Hi Alan, As you point out, many people who can't pirate a particular application, such as Windows XP, simply do without. So, I'm not saying that the ratio of pirated copies to lost sales is necessarily one-to-one. I'm just saying it is something north of zero, and thus software developers must pass that cost along to legitimate customers. Darrell Shandrow - Shandrow Communications! Technology consultant/instructor, network/systems administrator! A+, CCNA, Network+! Check out high quality telecommunications services at http://ld.net/?nu7i My deepest sympathies to the families and friends of the astronauts lost in the 2/1/03 space shuttle explosion! ----- Original Message ----- From: "Alan Dayley" To: Sent: Wednesday, February 12, 2003 10:52 AM Subject: Re: Waging War on Business > -------Original Message------- > From: Darrell Shandrow > Sent: 02/12/03 07:13 AM > To: plug-discuss@lists.plug.phoenix.az.us > Subject: Re: Waging War on Business > --[clip]-- > > I think that part of the reason for the high prices has to do > > with software piracy. The industry is trying to figure in the > > costs of such piracy and is passing those costs along to > > legitimately licensed users. > > I have been curious about this argument for a long time and perhaps this is the forum to ask. This is not a troll! > > How does software piracy "cost" software makers anything? > > I am not suggesting that piracy is acceptable. It is not. I just don't see how a unlicenced copy of "ApplicationPlus" costs AcmeSoft anything. For that copy they did not have to print manuals, stamp a CD, make a box, process shipping or, if they track users correctly, provide support. > > (On proof reading I can see that tracking users to provide support only to legitimate license holders is a cost. Partial answered my own question.) > > IF you assume that every person that has an unlicenced copy would have bought a ligitimate copy if the unlicenced one was not possible, one could point to lost sales. However, based on my experience, most of the time if making an illegitimate copy is not possible or convenient, most people do without the program rather than go buy a licenced copy. ie. 1,000 unlicenced copies does NOT equal 1,000 lost sales. > > I would think that a very simplified profitablity calculation for AcmeSoft is: > > (cost of producing software) / (number of sales expected) = (single license cost) > > But what you are saying is that the calculation is something like: > > [ (cost of producing software) + ("cost" of pirated copies) ] / (number of sales expected) = (single license cost) > > So, back to my original question: How does software piracy "cost" the software producer anything that increases the cost of a ligitimate license? > > Alan > > --------------------------------------------------- > PLUG-discuss mailing list - PLUG-discuss@lists.plug.phoenix.az.us > To subscribe, unsubscribe, or to change you mail settings: > http://lists.PLUG.phoenix.az.us/mailman/listinfo/plug-discuss