21 Sept 1997

Software Piracy: Cause and Consequence

The rise of Bill Gates as a man wealthier than whole countries on this planet is indicative of the fact that software is quite a lucrative business nowadays. So "valuable" are software packages like Microsoft Office 97 or Adobe PhotoShop that copy protection and whole armies of enforcers are in place to prevent the unauthorized copying and sale of these packages. Industry pundits and experts meet, estimating the potential loss of billions of dollars to the software pirates, encouraging disciplinary measures against governments like China while hold a less than martial stance against software piracy. Somehow, I am not particularly distressed to hear that Microsoft is once in a while an economic victim; but I am curious to know where the estimate of monetary loss is coming from.

But despite all the hysteria, no one focuses on *why* people would choose to pirate software. Not all software are so widely pirated, so why are some software packages so widely copied over others? The fault, IMHO, lies at least partly with the software developer itself. I will take Microsoft as the canonical example, although many others are applicable subjects. The software program Excel is a spreadsheet program that forms the cornerstone of many a business. It takes numbers and processes them to yield useful information -- not a mean difficult feat. It is the most successful program of its type in history, having beaten just about all its major competitors. Microsoft markets it, along with its Office brethren, as "essential office tools". A-ha! There is the keyword - essential. The truth is, none of the Microsoft software are any more essential than lipstick - many other programs can execute the same job, perhaps with arguably better performance, and most anyone can make do without it. No, the issue is perception; the masterful marketing of Microsoft has hooked the minds of those with the money with the notion that the software is essential, and as with any habit, once hooked, it is difficult to break away. Then, like any fluorishing pusher, the price is jacked up for the habit-forming product, regardless of the initial cost (it costs less than $0.60 to produce a single CD in bulk).

Piracy is fueled by two factors: the perception the software is essential, and the elevated price of the software. Kind of like jewelry, which I think is precisely the image that is being fostered. The difference between software and a physically addicting narcotic is that software, as with any other digital information, is infinitely reproducible by anyone. Unlike the typical addict, a software addict need only purchase his fix once, thereafter, he can share the program with anyone else (illegally?). Hard to believe, but the most cogent way to deal with piracy is to lower the entry price! Unlike the picture that companies like Microsoft or Adobe want to foster, most people will gladly pay for well written software which is reasonably priced. Many a shareware author survives well on that good practice.

So, to the developers: if you wish to minimize software piracy, lower your price! And to the rest of us: it is time to cut the cord. Support developers who produce technically superior products at a reasonable price. And don't get caught in the upgrade addiction.

my thoughts ... care to comment? Feedback.