Path: utzoo!utgpu!news-server.csri.toronto.edu!cs.utexas.edu!swrinde!zaphod.mps.ohio-state.edu!rpi!maddalop From: maddalop@cs.rpi.edu (Philip Maddaloni) Newsgroups: comp.society.futures Subject: Software Piracy Summary: piracy is harmful to the computer industry Keywords: piracy Message-ID: <_&_^R9#@rpi.edu> Date: 16 Nov 90 06:50:32 GMT Distribution: comp Organization: Rensselaer Polytechnic Institute, Troy NY Lines: 44 Nntp-Posting-Host: altair.cs.rpi.edu I feel that there is a significant problem in the computer industry today in the form of software piracy. Piracy can be broken down into three classes based on the effect each class has on the industry. The first class consists of those who illegally copy software which they could not in the first place afford. The second consists of individuals and businesses who illegally copy software which they could not afford. The third consists of those who illegally copy and mass distribute software. The first class does not directly harm the computer industry since the amount of profit the software producer makes is not affected. The only effect it may have is to cause the pirater to recommend the software to others or to disocurage them from purchasing it. This will only cause good products to survive and bad ones to fail. This is a good result if anything. The third class is harmful, but it is more easily identifiable and punishable. Also this problem has parallels in the recording industry and is therefore not central to computers and is therefore less interesting in this context. This second form, though, is one which seems innocent and harmful enough, yet is very harmful to the computer industry and to the future of personal computers and computer products and their availability to the consumer. First, the lost profit that will result in the large number of people illegally copying software will result in a raising of the price of software and a shortage in the market for software since it becomes too risky to develop software that will not be purchased by many people. This has the effect of putting software out of reach for many people and cause more pirating and this chain reaction continues . Next, if a new computer comes along that is powerful and innovative but, of course, being new has little user support it will be almost impossible for the computer to survive since it will not be profitable to make software for it. This lack of software will cause the computer to become less popular and therefore fail in the market. This type of block on innovation is unacceptable. Some may say that this is good since it fosters standardization since a few large popular computers will take over the market as have IBM and Apple in the personal computer market. Although standardiztion is beneficial to the industry innovation must not be sacrificed in favor of it. Some solutions to this problem are possible. One may be to include advertisements in software packages and in the software itself to raise enough money so as to lower the price of the software significantly enough so that people not only can afford it but are willing to pay for it to get the manual as opposed to just the software. Once software is inexpensive enough many more people will buy it and therefore cause it to become even cheaper and proliferate the product if it is a good one.