Bibor
Doomsday Machine
This discussion about piracy, and the post that slowpoke linked are somewhat one-sided. Let me expand it a bit.
Lets have to look at "classic ship piracy" first. A commodity X is being shipped from harbor Y to harbor Z on a vessel belonging to a certain company. Lets say the value of the ship is 100$ and the value of commodities being shipped is 500$. The cargo is stolen and the ship is scruttled.
Or at least this is what the damaged company (owner) tells us. The reality is that the only fact we know for certain is that the ship's market value is 100$. The actual value of the cargo is questionable.
Lets look at this act of piracy from a different angle. The company in question acquires the stated goods from a slave workforce, outright stealing from indigenous people or pays very little for its production. Lets say the costs for getting those goods costs 50$ either in slave upkeep, mercenary costs or very low wages. It's market value in Europe is 500$, that's true, but the company already perfomed a theft (possibly a very legal theft, at least as far as European Courts are concerned). If those pirates are actually rebel former slaves, indigenous people or workers, then they are actually not really stealing, but rather getting a fraction of their money back. It is not unheard of that pirates shared their spoils with the wider population. In a state of war, piracy was encouraged even by governments. But, European Courts and the company itself see it as an illegal act of theft.
Obviously, pirates might simply be very greedy individuals that accumulate more and more goods, resell it at european market prices and get very rich in the process. Oh wait, now they are acting exactly like the company that was shipping the goods in the first place! Except they haven't registered with the governement. Tax evasion!
***
When discussing software piracy its very important to understand that laws, companies and stockholders are a part of a system in which methods of stealing, abuse and exploitation are mutually agreed upon. Piracy is illegal not because its ammoral or wrong, but because its methods are not a part of the agreed upon system. "You're not playing by our rules!" is the issue here, not the acts themselves.
Lets explore this a bit further. Listed market price for Civilization is 50€. Estimated sales are 3 million. That's $150 million in revenues.
Now lets say a hundred people worked on CIV5 (Firaxis, 2k, Valve included) for a full year and that the average working hour is worth $30.
100 people X $30 X 340 days X 8 hours equals $8.160.000.
Lets add extra 50% for non-workforce expenses, that brings it to $12.2 million.
And also lets say these good people also want to live off this money for an extra year, which they deserve for working so hard for a year so that brings it up to $20 million.
Revenues $150 million, expenses $20 million. Where did the $130 million go?
I can't possibly know these things exactly, so I'm not saying that only a 100 people worked on it, nor that it took just a year, nor that the average salary is 30$ per hour etc.
But I'm pretty sure that's how this stuff works from companies that published their expenses and profits: Avatar costed $450 million in production, earns $2 billion in profits. Where did the $1.55 billion go? Charity? Aid? Healthcare? Perhaps.
Nobody questions how high the profits go, as long as they are a part of the system (i.e. we agreed this is the way you can earn ridiculous amounts of money, so its okay).
***
I have to go soon so I'll present one more issue. Quality of the product. Not the subjective quality, but the factual quality of the product. So, not "Ahh, Miele is such a solid washing machine" but "alloys and electronics used in making this machine are high-quality manufacturing".
I'll use the example of music, because that's a very vocal industry right now and I know much about it. Lets compare 1960s and 2000s in terms of factual quality.
To be a good, known and respected musician in 1960s you:
- had to be very skilled in singing or playing your instrument
- needed to know how to read a musical score
- needed to produce an unique melody and lyrics
Compared to 2000s when to be respected musician:
- have to have good looks
- no need to be particularily skilled in singing or playing your instrument
- don't need to know anything about classical music and scores
- can just copy other people's lyrics or music
If you don't believe me, just compare the singing of Freddie Mercury with that of Bono, or Elvis with Backstreet boys. ROFLMAO!*
*not based on personal preference, but pure raw skill.
However, EMI, Universal Music and others still expect of us to pay the same (or higher) price for their products, which are pretty much garbage.
***
In conclusion, all the risk is on the consumers. We pay for the product, we quality-test the product and we have to live with it if we were wrong. Manufacturers and distributors get all the profit and none of the risks. Avatar and Sex in The City II tickets cost the same. Yet it's rather obvious that the latter is inferior in every aspect, even to a hardcore series fan (my friend's wife confirmed this).
Lets have to look at "classic ship piracy" first. A commodity X is being shipped from harbor Y to harbor Z on a vessel belonging to a certain company. Lets say the value of the ship is 100$ and the value of commodities being shipped is 500$. The cargo is stolen and the ship is scruttled.
Or at least this is what the damaged company (owner) tells us. The reality is that the only fact we know for certain is that the ship's market value is 100$. The actual value of the cargo is questionable.
Lets look at this act of piracy from a different angle. The company in question acquires the stated goods from a slave workforce, outright stealing from indigenous people or pays very little for its production. Lets say the costs for getting those goods costs 50$ either in slave upkeep, mercenary costs or very low wages. It's market value in Europe is 500$, that's true, but the company already perfomed a theft (possibly a very legal theft, at least as far as European Courts are concerned). If those pirates are actually rebel former slaves, indigenous people or workers, then they are actually not really stealing, but rather getting a fraction of their money back. It is not unheard of that pirates shared their spoils with the wider population. In a state of war, piracy was encouraged even by governments. But, European Courts and the company itself see it as an illegal act of theft.
Obviously, pirates might simply be very greedy individuals that accumulate more and more goods, resell it at european market prices and get very rich in the process. Oh wait, now they are acting exactly like the company that was shipping the goods in the first place! Except they haven't registered with the governement. Tax evasion!
***
When discussing software piracy its very important to understand that laws, companies and stockholders are a part of a system in which methods of stealing, abuse and exploitation are mutually agreed upon. Piracy is illegal not because its ammoral or wrong, but because its methods are not a part of the agreed upon system. "You're not playing by our rules!" is the issue here, not the acts themselves.
Lets explore this a bit further. Listed market price for Civilization is 50€. Estimated sales are 3 million. That's $150 million in revenues.
Now lets say a hundred people worked on CIV5 (Firaxis, 2k, Valve included) for a full year and that the average working hour is worth $30.
100 people X $30 X 340 days X 8 hours equals $8.160.000.
Lets add extra 50% for non-workforce expenses, that brings it to $12.2 million.
And also lets say these good people also want to live off this money for an extra year, which they deserve for working so hard for a year so that brings it up to $20 million.
Revenues $150 million, expenses $20 million. Where did the $130 million go?
I can't possibly know these things exactly, so I'm not saying that only a 100 people worked on it, nor that it took just a year, nor that the average salary is 30$ per hour etc.
But I'm pretty sure that's how this stuff works from companies that published their expenses and profits: Avatar costed $450 million in production, earns $2 billion in profits. Where did the $1.55 billion go? Charity? Aid? Healthcare? Perhaps.
Nobody questions how high the profits go, as long as they are a part of the system (i.e. we agreed this is the way you can earn ridiculous amounts of money, so its okay).
***
I have to go soon so I'll present one more issue. Quality of the product. Not the subjective quality, but the factual quality of the product. So, not "Ahh, Miele is such a solid washing machine" but "alloys and electronics used in making this machine are high-quality manufacturing".
I'll use the example of music, because that's a very vocal industry right now and I know much about it. Lets compare 1960s and 2000s in terms of factual quality.
To be a good, known and respected musician in 1960s you:
- had to be very skilled in singing or playing your instrument
- needed to know how to read a musical score
- needed to produce an unique melody and lyrics
Compared to 2000s when to be respected musician:
- have to have good looks
- no need to be particularily skilled in singing or playing your instrument
- don't need to know anything about classical music and scores
- can just copy other people's lyrics or music
If you don't believe me, just compare the singing of Freddie Mercury with that of Bono, or Elvis with Backstreet boys. ROFLMAO!*
*not based on personal preference, but pure raw skill.
However, EMI, Universal Music and others still expect of us to pay the same (or higher) price for their products, which are pretty much garbage.
***
In conclusion, all the risk is on the consumers. We pay for the product, we quality-test the product and we have to live with it if we were wrong. Manufacturers and distributors get all the profit and none of the risks. Avatar and Sex in The City II tickets cost the same. Yet it's rather obvious that the latter is inferior in every aspect, even to a hardcore series fan (my friend's wife confirmed this).