Path: utzoo!attcan!uunet!lll-winken!lll-tis!ames!umd5!uflorida!novavax!proxftl!rafael
From: rafael@proxftl.UUCP (Rafael Mayer)
Newsgroups: comp.misc
Subject: Re: Piracy
Keywords: copy protection piracy
Message-ID: <174@proxftl.UUCP>
Date: 16 May 88 14:14:14 GMT
References: <9160@cisunx.UUCP> <1801@uhccux.UUCP> <807@netxcom.UUCP> <1641@looking.UUCP>
Organization: Proximity Technology, Ft. Lauderdale
Lines: 43

> If software authors charged 200% more than what their software was worth, they
> would not sell one single copy.  Not one.  OK, perhaps a few copies to
> complete imbiciles, but that's about it.  Lotus has managed to sell a few
> million copies.

You are implying that Lotus's production costs are in excess of $150 dollars
and I don't believe that.

Actually, software is over priced initially to cover the R&D margin. Once the
R&D cost is covered, the rest of the costs per unit (production and
advertising) are close to negligible compared to what the software costs.

> Ah, you mean 200% more than it's worth to YOU!  So what we need is to hire
> you and others like you to be "worth police" to go around and make sure
> nobody charges more for anything than you think it's worth, even if millions
> of others think it is worth more.

Actually, something is only worth what people are willing to pay for it. You
could have the greatest little program, and if no one will pay a cent for it
it is worthless. Worth is relative to both the buyer and seller, it is not
an intrinsic quality of the product.

> How much is land worth?  How much is gold worth?  How much is a spreadsheet
> worth?  Why should software be any different from land?
>
> I hate to tell you this, but making as big a profit as possible is what makes
> the world go around.  Most people in business would be confused if you told
> them profiteering was a crushing indictment.
>

Actually you make a good point. Profits are good. I am all in favor of profits.
I am not in favor of companies that treat their customers unfairly. I don't
expect software companies to make prices so low that they run themselves out
of business, but at the same time I do expect them to make a only a reasonable
profit (400% is not reasonable). I don't believe that Lotus's production costs
are $100 dollars per unit. They are so busy over-paying their executives that
they end up screwing their customers. Software piracy is a direct cause of
their pricing policies. (Of course there will always be software pirates. No
matter what the cost.)

I dodn't mean to flame so much, but this issue always gets me riled. Nothing
personal.

Rafael