kb said:
I for one have always felt that piracy figures are vastly overstated particularly when it comes to placing a value to piracy losses. A pirated copy does not translate into a lost sale. In fact there are probably numerous cases where a pirate copy has eventually translated into more than one sale.
I agree, piracy figures are vastly overstated. What they do is assume that every single case of piracy translates into one lost potential sale, and multiply the number of cases by the retail price of the software. This is wrong on so many counts it's just insane. And as you say, there are various benefits to piracy (e.g. 'network effects') that ultimately raise sales by entrenching your product in the market; companies like MS in fact deliberately take advantage of this to get people 'hooked' on their software. (Of course I'm not justifying piracy, just saying these okes are full of s***.)
Furthermore the reasoning in this article is
highly specious:
"SA's average software piracy rate is pegged at 36%, representing a R950m loss to the economy." The economy doesn't LOSE that money, it goes elsewhere. Those businesses who save money by pirating software now have more capital to hire more people, grow their businesses faster, and produce more products and more wealth for society. In fact the economy on the whole
benefits, because those companies can now hire more people AND still get to use Autodesk software to improve their productivity. Only Autodesk loses. And although some jobs at Autodesk are lost, those jobs would not have added as much value to the economy as those jobs created by the increased capital flowing in the economy due to piracy. Another point is that Autodesk is a foreign company, so most of their profits ultimately flow OUT of the country and into the (foreign) economies of the shareholders.
Again, I'm not saying it's right, and I'm not justifying it. Just saying these guys are lying. The software industry may lose out due to piracy, but the "economy" doesn't lose anything - other sectors of the economy
gain from the use of the pirated software and the increased capital.
These guys are playing with words. A "loss to the economy", by definition, is something where money is spent (or resources used up) but NO NEW VALUE is generated - e.g. repairing a broken street light that someone drove their car into.