Piracy is highly condemned everywhere. It is the terrorism of software. It eats away the profit of all the developers and makes their efforts useless. The fact that piracy is wicked is even supported by the people who share stuff on torrent, who write that “If you like this game/movie, please buy it. Support the devs man”. It is really disheartening to see that after all the effort one has put into a product, someone just copies it and sells it for free.
Piracy is more of an ethical issue rather than a technological one. For every mind that protects the products from getting copied, there are ten others who have much sharper mind [probably their own co-workers] who want to get the product out for free. According to me, half of the pirated products are the efforts of the employees working on it who can do a little ding-dong and screw their company’s profits. It wouldn’t come as a surprise to me if I’d see a Microsoft employee selling pirated Windows to his neighbor.
In short, its bad. But after giving it much thought [as per what limited knowledge I have], I have found that piracy can help - if tackled like a necessary evil. In a market like India or China, I think piracy has helped Microsoft in the long term. [I’ll use Microsoft Windows to discuss the case because “its obvious”]
In a market like India, when computers were considered magical artifacts and when a Pentium I would cost you nearly Rs. 50,000, a free OS helped a lot. And at that time (the 90s era), Microsoft was slowly gaining popularity as the best OS around, because it had kicked in the concept of GUI. As a result, computer revolution began in India with a PC having Windows. At that time, India had no laws to tackle piracy. [Well, even if it had, I don’t think it would have made much difference].
The result was the rapid expansion of the market with just Windows as the concept of an OS. Pirated versions of Windows 95, 98, 2000, NT and XP [the decade of 1995-2005] did the miraculous work of making Indian people believe that Windows is part of a computer and that a PC and Windows are one and the same. Schools, colleges, universities, cyber cafes - everywhere and everyone - used pirated Windows. No one knew what Unix was. [what if it was like, 100 times better and was developed 20 years prior to Windows].
The result - today with the advent of laptops, the price of Windows is bundled with the laptop. There are many laptops with Unix as the OS, but those are rare. 95% of the laptops sold in India are shipped with the Windows OS. And in the coming years, as long as laptops and branded PCs are to stay, Microsoft has its audience, and they will pay for it. [And believe me, PCs and laptopos are staying, no pesky tablet or smartphone can play Crysis, Call of Duty or World of Warcraft].
Two words that would help me over here are - market penetration and brand building - and piracy helped Microsoft do that, at least in India. And I don’t think it suffered losses in the decade. Now imagine the utopian concept, that Windows had no pirated versions. I don’t think anyone in India would have coughed up anything between Rs 3000-7000 for something they can get for free. The result would have been the emergence of Unix as the OS of choice, Microsoft getting beaten up as “something that charges money for what we get for free”. Because here in India, the concept of good is the concept of free.
Let us take the discussion to a more general perspective of piracy. Piracy helps companies by letting the audience adapt to their products. Once you see people clinging to your products like a pole in a storm, it is time to introduce the money concept, but even that should be done incrementally. For example, music piracy helps people get the song in their head, and when there is a concert of their favorite singer, they are going to cough up money for something that they already know.
In the gaming industry, (PC specifically), the companies shouldn’t battle their pirated version getting around if they want to build a brand in terms of the game. Personally, I would buy the next Call of Duty or Battlefield game if I cannot it pirated. The thing is - for urging people to buy your products, you should arouse their interests. People will pay only if they like it, and no one can like by seeing only the demo or the trailer of the game.
Companies should get one thing straight into their mind - no one will pay for a new thing. Instead of battling against piracy, which is inevitable, the strategy should be - getting people used to your products and charge when they have not alternate definition of the product you’re selling. And then, you are dominating. And I think Microsoft has been successful in many markets by following this endeavor. [Although what we need ponder upon is whether this market strategy was intentional or accidental, and that, is what we’ll never come to know].
Bottom line - even if piracy [or shall we say, free product] hurts you in the short term, cling to it, it may reap you profits in the long term. But as people get adapted to your free product, its the responsibility of the company to manage the brand in such a way that you know how to leverage your customers into paying what they consider best. A little thinking and market research - and piracy is the industry standard for launching their first product. [Now we’re talking about utopia].
P.S: We would never know if companies have already realized this, and that is the reason why pirated products are still floating in the market.
Piracy is more of an ethical issue rather than a technological one. For every mind that protects the products from getting copied, there are ten others who have much sharper mind [probably their own co-workers] who want to get the product out for free. According to me, half of the pirated products are the efforts of the employees working on it who can do a little ding-dong and screw their company’s profits. It wouldn’t come as a surprise to me if I’d see a Microsoft employee selling pirated Windows to his neighbor.
In short, its bad. But after giving it much thought [as per what limited knowledge I have], I have found that piracy can help - if tackled like a necessary evil. In a market like India or China, I think piracy has helped Microsoft in the long term. [I’ll use Microsoft Windows to discuss the case because “its obvious”]
In a market like India, when computers were considered magical artifacts and when a Pentium I would cost you nearly Rs. 50,000, a free OS helped a lot. And at that time (the 90s era), Microsoft was slowly gaining popularity as the best OS around, because it had kicked in the concept of GUI. As a result, computer revolution began in India with a PC having Windows. At that time, India had no laws to tackle piracy. [Well, even if it had, I don’t think it would have made much difference].
The result was the rapid expansion of the market with just Windows as the concept of an OS. Pirated versions of Windows 95, 98, 2000, NT and XP [the decade of 1995-2005] did the miraculous work of making Indian people believe that Windows is part of a computer and that a PC and Windows are one and the same. Schools, colleges, universities, cyber cafes - everywhere and everyone - used pirated Windows. No one knew what Unix was. [what if it was like, 100 times better and was developed 20 years prior to Windows].
The result - today with the advent of laptops, the price of Windows is bundled with the laptop. There are many laptops with Unix as the OS, but those are rare. 95% of the laptops sold in India are shipped with the Windows OS. And in the coming years, as long as laptops and branded PCs are to stay, Microsoft has its audience, and they will pay for it. [And believe me, PCs and laptopos are staying, no pesky tablet or smartphone can play Crysis, Call of Duty or World of Warcraft].
Two words that would help me over here are - market penetration and brand building - and piracy helped Microsoft do that, at least in India. And I don’t think it suffered losses in the decade. Now imagine the utopian concept, that Windows had no pirated versions. I don’t think anyone in India would have coughed up anything between Rs 3000-7000 for something they can get for free. The result would have been the emergence of Unix as the OS of choice, Microsoft getting beaten up as “something that charges money for what we get for free”. Because here in India, the concept of good is the concept of free.
Let us take the discussion to a more general perspective of piracy. Piracy helps companies by letting the audience adapt to their products. Once you see people clinging to your products like a pole in a storm, it is time to introduce the money concept, but even that should be done incrementally. For example, music piracy helps people get the song in their head, and when there is a concert of their favorite singer, they are going to cough up money for something that they already know.
In the gaming industry, (PC specifically), the companies shouldn’t battle their pirated version getting around if they want to build a brand in terms of the game. Personally, I would buy the next Call of Duty or Battlefield game if I cannot it pirated. The thing is - for urging people to buy your products, you should arouse their interests. People will pay only if they like it, and no one can like by seeing only the demo or the trailer of the game.
Companies should get one thing straight into their mind - no one will pay for a new thing. Instead of battling against piracy, which is inevitable, the strategy should be - getting people used to your products and charge when they have not alternate definition of the product you’re selling. And then, you are dominating. And I think Microsoft has been successful in many markets by following this endeavor. [Although what we need ponder upon is whether this market strategy was intentional or accidental, and that, is what we’ll never come to know].
Bottom line - even if piracy [or shall we say, free product] hurts you in the short term, cling to it, it may reap you profits in the long term. But as people get adapted to your free product, its the responsibility of the company to manage the brand in such a way that you know how to leverage your customers into paying what they consider best. A little thinking and market research - and piracy is the industry standard for launching their first product. [Now we’re talking about utopia].
P.S: We would never know if companies have already realized this, and that is the reason why pirated products are still floating in the market.
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