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The following are a few points on piracy as from somebody whose been in the software industry for a few years now(that'd be me):
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1. The only people who will pay for software are those who want to pay. You can't stop the rest from pirating, just delay them.
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2. Revenue loss from piracy is impossible to measure, but you can measure the ROI of countermeasures (like DRM). Do sales go up or down?
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3. The ROI of DRM is generally so low that anything too complex will just cut into your margins. Choose simple and cheap over unbreakable
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4. If your sales are front-loaded (most of the sales are in the first few weeks) then more complex DRM to delay piracy makes a lot of sense
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5. Given point 1, you limit piracy by making more people want to pay (as opposed to having to): Lower prices, make them care, or both
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6. Some of the best piracy countermeasures are on the business model level: Subscription-based services/updates. Web Apps.
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7. You can develop a software product that is rampantly pirated by your target market and still make a profit (see point 1).
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8. Some folks have a crazy sense of entitlement to piracy. Engaging with them is soul-sucking. They love the work and hate the creators
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9. Piracy thrives on community, all major forms of it (torrents, websites, forums) can't exist without it.
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10. The best way to prevent piracy is to sap the community around piracy: Fix major grievances. Address price and availability concerns.
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11. Anything that adds to that community's list of grievances feeds it and promotes piracy. That's why aggressive DRM increases piracy
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12. Once a strong piracy community has developed around your product niche you're sunk and your only customers will be the naturally honest
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13. The effectiveness of lower pricing in countering piracy depends on the market. Works well for impulse buys, less so for niche products
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14. Piracy isn't marketing. Controlled free offerings are. The two are completely different, but free obviously diminishes the piracy drive
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15. Piracy can and has destroyed a product's viability. E.g. products that aren't viable at lower prices but have mostly casual users
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16. People who claim that piracy isn't an issue don't have loans to pay or kids to feed. It is, however, a very misunderstood issue
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17. Alienating pirates isn't smart in the long-term. If you aren't an arsehole about it some of them will pay when they have money
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18. If your work adds no value to the world when free & pirated, if its only meaning is to pay your bills, then you're as bad as the pirates
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19. That doesn't excuse piracy in general, just that some software cos are evil scum-suckers and piracy's the least of what they deserve
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20. The software market isn't a single homogenous market. Different segments require different business models and tactics.
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21. Talking as if the software (or ebook) market is homogenous is really stupid. It's markets (plural) and they are all different
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That's it. Apologies again for flooding.