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- Path: sparky!uunet!gatech!pirates!emory!athena.cs.uga.edu!fuller
- From: fuller@athena.cs.uga.edu (James P. H. Fuller)
- Newsgroups: comp.sys.apple2
- Subject: Re: The Perennial Piracy Debate (was Re: Bilestoad)
- Message-ID: <1992Jul23.185730.19631@athena.cs.uga.edu>
- Date: 23 Jul 92 18:57:30 GMT
- References: <1992Jul21.215710.12912@sunb10.cs.uiuc.edu> <6vfmmzb.payner@netcom.com> <bazyar.711852801@teal>
- Organization: University of Georgia, Athens
- Lines: 48
-
- bazyar@teal.csn.org (Jawaid Bazyar) writes:
-
- > The lost profits argument is valid. It's like saying, well, these
- > people now have this software. If they have it on their computer, and
- > use it, that's lost profits to the company whether the jackass pirate
- > had the money to pay for it or not.
- >
- > ....
- >
- > I tell you what, Rich. You try being a software publisher sometime.
- > Piracy will become _very_ important you you when every illegal copy
- > means someone reaching into your pocket and stealing $20.
-
-
- The lost profits argument is vapor, because you don't have any objec-
- tive handle on what your stolen program is really worth (as opposed to the
- price you arbitrarily stick on it.) There's nothing to keep you from
- setting the price of your shareware program at one billion dollars U.S. per
- copy, and then claiming one billion bucks of lost profit each time it gets
- pirated. You can work yourself into a lather over this ("I could have been
- as rich as Bill Gates! I could have been as rich as Scrooge McDuck! But the
- damn pirates stole my fortune!") but this rests on two false assumptions:
-
- 1) You assume your program is in fact worth whatever you say it's worth,
- so if you decide you're losing twenty bucks per piracy then you really
- are, or if you decide you're losing a billion bucks per piracy then
- that's your true economic loss also.
-
- 2) You assume that each piracy equates to a lost sale, at your arbitrary
- price, and that in every case the program would have been purchased
- if it hadn't been cloned.
-
-
- The truth (to take the assumptions in reverse order) is that you have
- *no idea* whether 1000 piracies cause 1000 lost sales, or 10 lost sales,
- or no lost sales. You'd *like to think* that every piracy equals a lost
- sale but we don't get to base rational arguments on wishful thinking (if
- we don't want to attract smirks and giggles, anyway.)
- The other truth is that the actual economic value of a pirated pro-
- gram has virtually no relation to the program's arbitrary sticker price.
- Do you want to know the *real* value of your shareware program? Just take
- the amount of money the program has *actually earned for you* and divide
- that by the number of copies floating around. *That* is the value of
- each copy, and your true economic loss each time it gets cloned. In
- the case of most shareware we're talking a few hundredths of a cent per
- copy here: the *true* lost profit, as opposed to the author/publisher's
- *imagined* lost profit.
- -- jf
-