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1/14/2009 12:47:00 PM

When good blogs go bad. Or, What is cool about promoting software piracy?

by John Gunn

While walking down a cold and crowded city street, I passed a teenager wearing a bright orange T-shirt with a large message that was amusing but vulgar (cannot be printed here). A couple of thoughts came to mind. First, the offer being promoting was truly a generous one by any measure, but that’s my wife’s exclusive domain. Second, aside from the intrinsic benefits derived from the demonstration of free speech, I wondered why some people feel compelled to broadcast this type of message to a larger audience and what type of audience finds it appealing.

We sometimes find answers in unexpected places. In a recent blog entry, Software Developer Realizes That Pirates Are Giving Him Market Feedback, Mike Masnick of TechDirt crosses the line he previously vowed to avoid (10-Jan,2008) and actively promotes the criminal act of software piracy. He does this by justifying the activity and extolling the imagined benefits to the developers who are victims of piracy. The purported benefits of piracy include obtaining supposedly valuable market feedback and generating greater awareness.

I have read many of Mike’s columns and have found him to be an intelligent and articulate voice of the industry. Unfortunately, in this instance he conveniently ignores the simple truth that there are far more efficient and reliable methods for software developers to gather great feedback on their products. Any knowledgeable marketer would much rather receive feedback from paying clients or from a focus-group comprised of their target audience rather than from thieves (unless criminals are their target audience). Mike’s reasoning displays about as much logic as defending the use of rufees so that coeds can get quick and honest feedback about how they look when naked and unconscious, or promoting auto theft so that auto makers can get feedback from drivers on a limited budget .

The claim that “piracy almost always is a leading indicator for what the market wants, but isn't being delivered” may be true but only to the extent that most people would of course rather get everything they desire for free, and some are willing to commit the illegal act of stealing software to satisfy this particular desire. Yes, there are pirates and they steal the most desired items most often. This is an argument for software protection not for free distribution.
Software developers have many proven and effective vehicles other than pirates to get their products into the market. I recall playing countless hours of Doom, the poster-child for a successful shareware strategy. After getting hooked on the free download, I bought the follow-on version. So did a lot of other people and it generated more than $10 million for id Software. There are many advanced licensing solutions available that are designed for this exact application. This is the developer’s choice to make not the software pirates’.

Last questions for Mike: Why use the denigrating term “freaking out” to describe software publishers who act to protect their assets and revenues by using an effective DRM solution or by pursuing action against people that steal from them?  Wouldn’t you do the same? Many developers fight piracy very effectively and as a result they derive more revenues and can invest in developing a better product. I would describe this simply as a smart business practice.  Been wearing any bright orange T-shirts lately?

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licensing | anti-piracy

Comments

1/18/2009

Great points and basically unassailable. I do think, though, that content holders software and entertainment holders alike have taken a long time to get realistic about what their products are really worth. Your example of Doom is right on because increasingly, the competition is going to come from those who have been shut out of the game because of distribution challenges and they'll go around to offer their work directly to the customer for free. If what they offer is worthwhile people will pay for more. Of course, those people who have been shut out because they're just talentless will also get their feedback -- silence.

Kathleen Maher

1/20/2009

Oh look, someone pretending DRM actually serves a purpose.

You are no longer qualified to have an opinion. Move along.

Anonymous

1/20/2009

I've got one more comment to make about piracy. It's about GTA IV. I played the original game and was amused by it, didn't buy it, played it at a friend's house. Never even got installed on one of my computers. Never had a desire to play the game.

Now, coming to the recent past. GTA IV was coming out, and there was all kinds of hype and pre-release reviews about how great it was. I REALLY WANTED THIS GAME!

It wasn't released on the PC platform at first, and I don't own a game console. I wrote a nasty email to the publisher, Rockstar, about that. Then when it was released on PC, it contained SecuRom and even if you get it on Steam, still had SecuRom. I wrote an even NASTIER email to the publisher, Rockstar, about that, advising them that they just lost a sale because SecuRom is essentially a rootkit that is almost impossible to remove, and has been known to corrupt the Windows OS. Now, if I wanted, I could easily pirate a copy of it, sans the DRM, but guess what, I won't and haven't. Because I don't believe in even supporting that game through piracy. And you CAN count that as a LOST sale due to DRM, and NOT because of piracy.

Monarch

1/20/2009

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charged.co.za

1/20/2009

This is exactly the "freaking out" that's being talked about. Apparently, you set a "line" and he "crossed" it. Well I think Mike has a point. In Egypt, the Nile used to flood every year. Instead of damming the river, they used the flooding as a way of irrigation and fertilisation.

When you say "rather receive feedback from paying clients or from a focus-group comprised of their target audience", are you not limiting yourself to a certain group of customers, and not ALL users?

Instead of creating vast irrigation systems that costs so high (DRM), the flood (piracy) is used to save costs. Instead of paying millions to use/develop DRM, hiring laywers to sue dead people and 12 year old girls, maybe it would be wiser for all of the industry to wake up and give consumers what they want, instead of telling us what we want based on "paid market research".

Chengzhe

1/20/2009

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Learning How To Benefit From Piracy Is Not The Same As Endorsing Piracy

dullhaven.com

1/20/2009

The real issue here is that there is no such thing as effective DRM. When you really think about it, what kind of protection scheme <i>hasn't</i> been mercilessly cracked?

Let's take a look at the Spore debacle a few months ago. The SecuROM DRM that was used caused an immediate backlash from consumers who knew what the implications of it were. The thousands of negative reviews on Amazon.com are a testament to that. Personally, I don't like being at the mercy of an activation server. With some games (MMOs, primarily) I can understand that there can be service outages from time to time. However, when I buy a box off of the shelf and install it I expect it to work right then. When I buy games for my Xbox 360 I don't have to authenticate them. Why should I have to do that with any other platform?

All of that aside, did the SecuROM DRM actually do its job? Far from it. <a href=torrentfreak.com/.../">Spore is believed to be the most pirated game of 2008</a>. Beside possibly dissuading people from buying the game what exactly did the DRM do? If the DRM was effective the game wouldn't have been cracked and there would be no reason to download it.

I can certainly understand the need for developers to prevent consumers from making casual copies of software or checking serial numbers for online games. Publishers just have to realize that no matter what kind of nasty system that they throw in, it's going to be cracked.

Also, I find it kind of interesting that you'd mention the shareware version of Doom after that rant about how Mr. Masnick "promotes" piracy in his article about the cracked iPhone game. The rationale that the cracker of that particular game used was that it didn't sell simply because there was no trial version of it available.

That leads me to my next question: would you have purchased Doom if there were no shareware version available? Can you honestly say that you would have purchased it if you had no way of evaluating it?

I rarely purchase games if I can't get a decent trial of them. If I can't see what the game is like I just don't buy it. While I don't agree with the cracker's methods, his rationale certainly makes sense. Considering all of the shovelware that ends up on services such as the App Store it's easy to see how offering a trial version could bolster sales.

Whew. Well, I've rambled enough for now so I'm just going to leave you with that. Have a wonderful day!

Spectere

1/20/2009

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the-informer.info

1/20/2009

Lolz, stupid article. I am a developer and I have learnt a lot from pirates. It's easier to understand them when you interact with them!!! Also we can better our development significantly

Chavanak

1/20/2009

Mr. Gunn, you either need to take a reading comprehension class, get an editor that will make sure you get facts straight, or just quit blogging, as you might end up with a libel suit some day. Mike Masnick of Techdirt.com NEVER wrote or said, as you say, "actively promotes the criminal act of software piracy."
In fact he has actively purported that piracy is wrong. All he ever said is that companies need to learn from why the piracy is going on and adjust their business models to compete with it.

Let's put it this way, if there is RAMPANT piracy of any type of digital media, the content creator and distributor are doing something WRONG. Either they are overpricing their product for their target audience, or they are putting too much draconian DRM on the product that makes the pirated version much more valuable.

Think about it, many people purchased games with cd-restrictions, and then went and downloaded the No-CD crack so they weren't tethered to the CD, not because they wanted to pirate the game, but to make the game more valuable. Now DRM is essentially rootkits and viruses for their computers. Why would anyone want to buy virus ridden software? They wouldn't. So essentially, DRM is driving many customers to piracy to be free from the DRM virus/rootkits.

Monarch

1/20/2009

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popmartian.com

1/20/2009

Also, copyright infringement != theft. Consult your local dictionary, or, since reading comprehension is apparently difficult for you, ask the Supreme Court.

Anonymous

1/20/2009

With all due respect Mr Gunn, you're firing small-bore rounds while Mr Mesnick is dropping nukes on your logic.

The sad fact is that DRM has never actually protected any software title from copyright infringement. All DRM vendors really offer their customers is an illusion of protection. The reality is that pirates simply remove the DRM and distribute the DRM-free product anyway. The only people impacted by DRM are the honest game buyers who purchase the legitimate copies instead of downloading an illegal copy.

And their reward for choosing to do the right thing by the developers? In short: their copy of the game is inferior in every measurable way to the copies supplied by the pirates.

Not only is it more expensive but they also face the prospect that they cannot continue to play their legally purchased game into the future. They have to remember to revoke activations before reformatting or upgrading components. They have to ensure the cd doesn't get scratched. They have to have an internet connection which serves no other role in the game. They have to be concerned about the DRM servers being shut down in the future. They have to deal with artificially created software conflicts. They have to deal with replacing cd drives that get misaligned from overuse by poorly executed DRM software.

But worst of all, Mr Gunn, you badly misrepresent Mr Mesnick's argument and for that, you ought to be ashamed of yourself. Mr Mesnick never once condoned software piracy. He simply pointed out that there is a silver lining to the problem and that a smart developer would find more ways to exploit and benefit from the piracy phenomenon.

Piracy issue is not going away, no matter what DRM vendors come up with and what promises they make. That's simply acknowledging reality.

He did, however, attack the logic by which DRM vendors like yourself attempt to scare up a living. He is able to do that because the DRM industry is nothing but a parasite sucking the life out the creative industries. You offer not so much as a single benefit to the customers, and you only offer an illusion of protection for developers. In my opinion, DRM vendors are ethically no different than patent troll companies. The sooner the law is changed to outlaw your industry the better.

And for the record: I haven't pirated a game in over 20 years of PC gaming. If I play, I pay. But I will never buy another PC game that is infested with excessive DRM software like SecuROM or Starforce. Ever. And that's the stone cold truth Mr Gunn.

cd

1/20/2009

This has to be one of the most ridiculous, willfully ignorant, needlessly contrarian articles I've ever seen.

Mike's article did not condone piracy; to state such is inflammatory trolling. It is the thinnest premise stretched beyond the point where anyone of any reason would take it seriously.

Data is data is data: the idea of refusing to go to the source of the behavior and at least TRYING to find a way to combat the issue is frightfully naive. I would find myself hard pressed to take your opinion on matters pragmatic seriously after this.

ben

1/21/2009

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lastatstart.com

1/21/2009

Being a victim is a choice. Laws can be changed. When laws are change, is their prior violation an immoral act?

You cannot assume your paying customers are your target market when market activity is indicating otherwise. Focus groups are so last century, haven't you read Blink by Malcolm Gladwell yet?

"Fighting piracy" is just like the war on drugs, the war on terror, abstinence pledges, and protecting children. One looks very noble in one fight, and some people will support the efforts because they want to be seen as noble or as doing what their boss or constituents thinks they should do (getting other misinformed people to cut you checks, vote). But one can never fully reach one's goals 100%, and without unintended consequence. It's a noble game of wack-a-mole.

Your reading assignment is trilogy Innovator's Dilemma, Innovators Solution, and Seeing Whats Next by Clayton M. Christensen of Harvard Business Review.

Nick

1/23/2009

John's comments here are right on point. To suggest that copyright owners should be thankful when people pirate their works because they get free market feedback is absurd. When a copyright owner wants to get feedback they can do it in numerous ways. Ultimately, the copyright law is about "control." It says when I create something I get to control whether you use it, how you use it and when you you use it. "Piracy," on the other hand, is about destroying that control. Sure, there might be some ancillary benefits that result from the piracy -- but there are better ways for a copyright owner to obtain those benefits without having to rely on other people stealing his/her/its product.

As to the comments on DRM, they are equally as absurd. I wonder how many people who commented here on the so called "uselessness" of DRM also have locks on their doors at home or lock their cars. DRM is simply a lock. And like any lock it can be broken. Just because a lock (or a DRM) can be broken does that mean we should stop locking things up? Should I stop locking my house because someone can break through the window and steal my possessions. And when they do this should I be greatful that I now know that my possessions were valuable since someone stole them and thank the robber for leaving such helpful feedback?

If the contents of my house are not that valuable then I won't invest as much money on a lock to protect my it. If the contents are valuable I will. Or if I live in bad neigborhood and keep on getting broken into I will. In fact, I might get an expensive front door lock, window locks and an alarm system. The same is true for copyrighted works and DRM. Quite simply, the fact that a DRM is capable of getting hacked proves nothing. This argument only serves as a way for hackers and others to try and justify their illegal ways.

Now I realize that my words make it sound like I am in the DRM industry or have a stake in it. I do not. My words may also sound like I am a commercial copyright owner or have a stake in it. I do not. What I am is an angry citizen that is tired of paying more for stuff simply because others think its OK to steal.

JustPlainAngry

1/23/2009

We can learn about psychology from studying the rational and behavior of serial killers, but we do not condone murder for the sake of learning.

Nick

2/18/2009

There is a fundamental issue that is being overlooked by most of the arguments, for and against
“……………if I can get it for free, why should I pay for it?

The real issue the software industry just cannot get a grip on how to solve piracy as there has been (for many years now) a culture shift in peoples mindsets about the concept of "it’s soft, therefore, it's free".

File sharing, p2p and Bit Torrent, and now YouTube, MySpace, Blogs and other social networking sites, have been around long enough now that a large proportion of the population of all age ranges knows intimately how to get that file, that song, that game, that movie, the latest TV show or that piece of software they wanted for free. Its easy. Go on tell me you haven’t tried it for yourself. If you haven’t you would have to be very a rare species.

If you go to YouTube you can find any number of video links to where to download xyz software, how to crack open or activate software or how to hack into wireless systems, irrespective of whether they are open, WEP or WPA. Take your pick, it’s all there ready for you to grab and run! If the site is down you can always find a cached version somewhere.

Web 2 has given rise to the rapid spread of Blogging and Social networking and there are numerous sites now devoted to how to get hold of files of all types, albeit covertly done in many cases to try and escape notice, and transmission of where to find the links is often via word of mouth amongst user groups and communities.

Our observation after being advisers to industry for the last 18 years in terms of protecting against software, music and movie piracy within the business is that the economic model has shifted due to the groundswell of the user community being well versed in the techniques (using Web 2 and Torrent technologies) on how, where and when to grab “that file, for free”!

It's a social issue that will not be easily overcome.

Rob Harmer