This post is about piracy in general(in films, computer games, music,software etc). I don't know how much of game theory would come up, but I'd like to maintain the catchy title :) .
The edge which the pirates have, is the enormously high ratio of prices of original products as opposed to their "cracked" counterparts. Low production costs are actually a bane of sorts. The price ratio does a lot of psychological damage, it destroys altruistic feelings within. Producers usually work on the assumption that the customers would think rationally. It is not quite true, they ignore what we call "animal spirits". You don't always pick the right product at right price. Random factors (like your state of mind) play a very significant role in the decision-making process.
Several solutions have been worked for this. In the software/tech industry, "Donations" seem to be the answer. This actually tries to build back confidence and restore altruistic feelings in the customers. It kinda makes the customer feel involved with the company. Wikipedia is a very well known example of that. The developers had come with an emotional message. They could have actually made a lot of money through advertising, but they decided to keep the portal clean.
And a rule of thumb: If it's a "hit and run" case, the pirate is always at an advantage. It is very difficult to prevent him or to discourage the customers from buying it. So, the process must get dynamic. The company should offer post product services which are unique and which can't be offered by a pirate. Any good research lab never buys pirated software for simulations, one of the many reasons is need for quality service.
We need to note that the real evil is actually the low production cost. The producer has an edge over the pirate in terms of volume of business. So, the producers should modify the process so that there is some uniqueness. Only their company should be able to deliver the product at a low price given the quality. Volume of business is the edge that they have. This also means low royalty to the creators, but that can be covered by volume again. If the pirates are operating at large levels, then the producers have a real good chance to curb those activities and also impose "damages".
To cut the long story short, I would like to emphasize on "screw the pirates with the business model" and "reinforce altruistic feelings in potential customers". Continue activities to curb production, keep remodelling to reduce scope for "quality pirated products" and most importantly keep your customers involved and make sure they hate the pirates and not you. Keeping the "robin-hood" feelings away is the most important part of curbing piracy and that could be done only if the producers maintain good work-ethics and not hurt anyone in any way. Windows is a victim of piracy because many don't seem to like the principles of the company.
The edge which the pirates have, is the enormously high ratio of prices of original products as opposed to their "cracked" counterparts. Low production costs are actually a bane of sorts. The price ratio does a lot of psychological damage, it destroys altruistic feelings within. Producers usually work on the assumption that the customers would think rationally. It is not quite true, they ignore what we call "animal spirits". You don't always pick the right product at right price. Random factors (like your state of mind) play a very significant role in the decision-making process.
Several solutions have been worked for this. In the software/tech industry, "Donations" seem to be the answer. This actually tries to build back confidence and restore altruistic feelings in the customers. It kinda makes the customer feel involved with the company. Wikipedia is a very well known example of that. The developers had come with an emotional message. They could have actually made a lot of money through advertising, but they decided to keep the portal clean.
And a rule of thumb: If it's a "hit and run" case, the pirate is always at an advantage. It is very difficult to prevent him or to discourage the customers from buying it. So, the process must get dynamic. The company should offer post product services which are unique and which can't be offered by a pirate. Any good research lab never buys pirated software for simulations, one of the many reasons is need for quality service.
We need to note that the real evil is actually the low production cost. The producer has an edge over the pirate in terms of volume of business. So, the producers should modify the process so that there is some uniqueness. Only their company should be able to deliver the product at a low price given the quality. Volume of business is the edge that they have. This also means low royalty to the creators, but that can be covered by volume again. If the pirates are operating at large levels, then the producers have a real good chance to curb those activities and also impose "damages".
To cut the long story short, I would like to emphasize on "screw the pirates with the business model" and "reinforce altruistic feelings in potential customers". Continue activities to curb production, keep remodelling to reduce scope for "quality pirated products" and most importantly keep your customers involved and make sure they hate the pirates and not you. Keeping the "robin-hood" feelings away is the most important part of curbing piracy and that could be done only if the producers maintain good work-ethics and not hurt anyone in any way. Windows is a victim of piracy because many don't seem to like the principles of the company.
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