Path: utzoo!attcan!uunet!tektronix!tekig5!wayneck
From: wayneck@tekig5.TEK.COM (Wayne Knapp)
Newsgroups: comp.misc
Subject: Re: lotus chairman makes 26 million
Keywords: copy protection piracy
Message-ID: <2767@tekig5.TEK.COM>
Date: 16 May 88 18:30:49 GMT
References: <9160@cisunx.UUCP> <1801@uhccux.UUCP> <807@netxcom.UUCP> <362@cf-cm.UUCP>
Organization: Tektronix Inc., Beaverton, Or.
Lines: 55

In article <362@cf-cm.UUCP>, mch@computing-maths.cardiff.ac.uk (Major Kano) writes:
>    In other words,
> 
>    "I really need it, and though I should like, from a fair-play viewpoint, to
>     pay for it, the people who wrote it are greedy so-and-so's and are
>     charging 200% more than the product is actually worth."
> 
>    In other words, the s/w writers are * PROFITEERING *.
> 
>    This seems to me to be a crushing indictment of s/w writers, but it is the
> most common reason for s/w copying that I have heard of. In most cases, I would
> agree with it.
> 
>    What does everyone else think ?
> 
> -- 
> Martin C. Howe, University College Cardiff | "You actually program in 'C'

   You are really off base.  The programmer often gets less than 15% of the
wholesale cost of the software.  A decent package will cost around $10 to
produce and normally one sells software packages to distributors for 40% of
the list price. They move the software out to store and by mail order at around
55% to 70% of list.  Store resell it at around 80% to 100% of list price.  You 
can save a lot by buying mail order.   

    Now lets say the author gets a good contract how much dose he make?

      List price     Wholesale price      -minus cost    author gets
    -------------------------------------------------------------------
       $50                $20                 $10            $1.50
      $100                $40                 $30            $4.50
      $250               $100                 $90           $13.50 
  
So if the author has put over a year in his work (often much more) he needs
to set the price at a level where he can make good money for the year.  It is
simply supply and demand.  He isn't a profiteer.  He is trying to survive.  

    I have some software that will be out this summer.  A several people have
over 4 man years of effort in it.  The list price will be around $300.  If all
goes well I'll get $30,000 for my years worth of work.  The other people will
get less since this code is a port.  Since the market for this kind of code is
less than 10,000 people right now I can't really sell it for less.  If I set
the price at $50 and sold a copy to all 10,000 people I get around $15,000 for
a years work.  Forget it.  If someone can not come up the $180 mail order price
he dosen't need my program!  I need to make a living too!  The real PROFITEER is
the priate who copies my code.  He gets 4 years worth of work for nothing!  By
the way most of the money that doesn't go to the author goes to pay for user
support for the package. 

   So I think that anyone who copies a program without paying should have to
pay the author 100 times what he would normally make for the sell and also 
have his floppy cut off.  Priates are the true PROFITEERS - why do you think
they are called priates!  

                                      Wayne Knapp