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Interesting blog post:"Just enough piracy"

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mouser:
http://longtail.typepad.com/the_long_tail/2005/08/just_enough_pir.html

"...I'll give you a surprising example. I was chatting with a former Microsoft manager the other day and he revealed that after much analysis Microsoft had realized that some piracy is not only inevitable, but could actually be economically optimal. The reason is counterintuitive, but intriguing...."
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zridling:
The lesson is to find a good-enough approach to content protection that is easy, convenient and non-annoying to most people, and then accept that there will be some leakage. Most consumers see the value in paying for something of guaranteed quality and legality, as long as you don't treat them like potential criminals. And the minority of others, who are willing to take the risks and go to the trouble of finding the pirated versions? Well, they probably weren't your best market anyway.
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The last sentence is crucial, too: those who steal it were going to anyway. Maybe this RIAA-attitude will fade over the next generation, but for now, it's difficult for the rich not to get richer. Within every millionaire beats the heart of a secret lust for being a billionaire. So it's never enough.

Microsoft ain't stupid. They've repeatedly given away Windows and Office and let the Chinese steal it for years without too much of a fight in order to gain valuable market share. Their attitude is once you get them hooked, then they'll stay and buy other products eventually. It may be hypocritical and evil, but it's not stupid.

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