[HN Gopher] Software Piracy and IP Management: Strategic Respons...
       ___________________________________________________________________
        
       Software Piracy and IP Management: Strategic Responses to Imitation
        
       Author : azalemeth
       Score  : 334 points
       Date   : 2021-09-03 15:56 UTC (7 hours ago)
        
 (HTM) web link (papers.ssrn.com)
 (TXT) w3m dump (papers.ssrn.com)
        
       | summerlight wrote:
       | S. Korea gaming industry once suffered a lot from piracy in 90s.
       | This was a main driver of their rapid transition toward online
       | gaming. In fact, one of the earliest graphical MMORPG was
       | invented by Nexon (a year before UO). Coincidentally, Nexon is
       | also the inventor of loot box which becomes their dominant
       | business model. And I think not many people prefer this over old
       | fashioned game packages.
       | 
       | So yeah, piracy could corner industry to "innovate" their product
       | and business model in order to survive. But it's not guaranteed
       | to be in a societally beneficial way.
        
         | faeyanpiraat wrote:
         | Online gaming is a societally beneficial innovation imho.
        
           | reificator wrote:
           | I agree with that statement.
           | 
           | MMOs and lootboxes are a societal harm however.
        
       | zozbot234 wrote:
       | Software piracy might not be as bad as actual piracy of the
       | "attacking ships on the high seas" variety, but it's still pretty
       | unethical, and promotes the spread of proprietary software that
       | does not furher the best interest of its users. Please use fully-
       | FLOSS alternatives instead whenever reasonable.
        
         | jedberg wrote:
         | There is a long standing debate on the ethics. High seas piracy
         | is bad because when the pirate steals, they deprive someone
         | else of their property. But in the digital realm, no one is
         | deprived of anything when someone else steals it, because in
         | almost every case, the person was not willing to pay for it
         | anyway, so there is no loss of revenue.
         | 
         | Honestly, there isn't a whole lot of difference between
         | something like open core software or open source with
         | commercial support and commercial software that is easy to
         | pirate. In both cases, the people who are willing to pay will
         | pay and the rest don't.
        
           | oauea wrote:
           | In some cases it may even increase revenue. There's been
           | multiple times I've pirated a game, only to buy it later to
           | get easy access to updates. Of course a good demo system
           | would help with this, and Steam's refund policy is somewhat a
           | step in the right direction.
        
           | Dumblydorr wrote:
           | Is it true that no one is deprived of anything in digital
           | piracy? There is surely a group who would not pay anyway, but
           | isn't there another group who would begrudgingly pay but
           | pirates if possible? Does this not deprive the software
           | makers of a bit of sales? Is this a marginal bit or a huge
           | amount of the sales? And does the piracy potentially lead to
           | popularization and more sales?
           | 
           | It sounds very tricky to measure these phenomena in software.
           | 
           | In music, I think the majority of musicians themselves live
           | off of their fans coming to shows or a small percentage
           | buying the albums, and side-gigs haha. There are probably
           | only dozens lucky enough to get huge payoffs from digital
           | sales.
        
             | foxfluff wrote:
             | > Does this not deprive the software makers of a bit of
             | sales?
             | 
             | I'd welcome a more neutral phrasing for this though. Yes,
             | it may change people's behavior. But depriving someone of
             | something sounds like something they _had_ is taken away
             | from them; but these are not sales or property they _had_ ,
             | rather it's something they perhaps _would have had_ if the
             | world were different. Now, a lot of things can  "deprive"
             | me of things that I'd like to have but never did..
             | 
             | As you say, it's very difficult to measure. Actually, it's
             | not something that can be measured, because it's a world of
             | hypotheticals. It's like measuring how tall you would be if
             | you had lived in the 1500s. You don't measure that.
             | 
             | If piracy isn't a choice, then I might look for an
             | alternative.. and if I find an alternative that pleases me,
             | then I'm less likely to deal with the author of the
             | original un-pirateable software, thus "depriving" them of
             | something they perhaps could have had if they had first
             | gained me as a user somehow.
        
           | [deleted]
        
       | wolverine876 wrote:
       | > We find that rising piracy increases subsequent R&D spending,
       | copyrights, trademarks, and patents for large, incumbent software
       | firms. Furthermore, copyright and trademark filings precede those
       | of patents, and firms with large patent portfolios
       | disproportionately increase copyrights and trademarks following
       | the shock. We conclude that piracy and similar competitive shocks
       | push firms to innovate to stay ahead of imitator products, and
       | that this effect is moderated by their existing patent
       | portfolios.
       | 
       | Is it pushing firms to claim more intellectual property?
        
       | otrahuevada wrote:
       | The biggest issue with "piracy" overall is that it describes a
       | phenomenon where users of an existing platform are sticking to
       | the agreed upon way of using that platform as designed despite
       | corporate lawyers' best attempts at changing terms to try and
       | invent a scarcity where there is none.
       | 
       | They tried to invent jaywalking for the web, and it went...
       | poorly. At least outside of corporate-lawyer-heavy circles.
        
       | sebow wrote:
       | Yea no sh*t, that's why Hollywood allows it (after the obvious
       | defeat from the dot-com era of the internet).
        
       | jwhite_nc wrote:
       | Adobe had 3 generations of designers, etc hooked on their
       | products because of ease of piracy much like drug dealers giving
       | out samples of crack in early 80s to build their customer base. A
       | large part of "their" patents came from companies they acquired
       | and integrated versus innovating on their own. So I don't think
       | patent portfolios are a good measure. Disclaimer: "May not apply
       | in all situations. Use at your own discretion".
        
         | azalemeth wrote:
         | And now, the zeitgeist is if anything in the opposite
         | direction: Capture One Pro, Raw Therapee, and Darktable have
         | got a _hell_ of a a lot better compared to Lightroom and C1P in
         | particular _proudly offers_ a lifetime license, not a
         | subscription. Similarly, DaVinci Resolve has a _free_ (if not
         | FOSS) business model, designed explicitly to compete with
         | Premiere, and, again, lifetime licenses. Affinity Designer
         | /Photo/Publisher are cheap, software that you "buy" and
         | increasingly "good enough" for pro use, to the extent that many
         | post about moving away from the CC treadmill to them.
         | 
         | Adobe arguably won this decade on the basis of the three
         | generations you mentioned. I am _not_ confident that they will
         | win the next ones - the last time I printed an actual book, the
         | publisher used CS6 +- Quark XPress internally (I wrote it in
         | LaTeX; they had some tricks for printing it on SRA4 paper and
         | wanted to use those tools to get the bleeds  & trims right).
         | The SaaS model was _explicitly mentioned_ as a reason for
         | sticking with the old software.
        
       | cletus wrote:
       | So there's a tweet I've seen where some anti-vaxxer is asking if
       | anyone else has noticed why all these unvaccinated people are
       | suddenly getting Covid like there's some sort of conspiracy.
       | Sadly it'll probably be taken as "confirmation" of nanobots or
       | something. Of course, this all just misses the point entirely.
       | 
       | I have the same feeling about this. It's not that piracy
       | increases innovation. It's that overly restrictive limits stifle
       | innovation and this includes the ridiculous software patent
       | fiasco.
       | 
       | It's not really surprising that the Patent Office didn't discover
       | that patents in general and software patents in particular are in
       | fact the problem.
       | 
       | There's tons of evidence of this too. The Wright brothers'
       | original patent on flight control completely stifled the aviation
       | industry such that when the US entered World War One they were
       | unable to build planes and they had to buy them other nations.
       | This particular event is why there's a patent pool for aviation
       | now.
       | 
       | A smartphone is literally covered by thousands of software
       | patents for completely obvious "innovations".
       | 
       | Commercial software tends to have a lot of restrictions such that
       | only paying customers can (legally) use it. Sellers would rather
       | not have someone use it and view them as a potential future sale
       | than risk giving it away for a low or zero price. Many of those
       | people using that software would probably lead to innovation.
       | 
       | The lesson here should be that overly restrictive IP enforcement
       | in general is the problem.
        
         | [deleted]
        
       | duffpkg wrote:
       | I wrote "Hacking Healthcare" for O'Reilly, which is still in
       | print after 10 years, amongst others. My intention in writing it
       | was never pecuniary but to hopefully encourage smart technology
       | people to enter healthcare. It has sold more copies than many
       | popular authors I read who seem much more "bestselling", which
       | always surprises me.
       | 
       | It is my opinion that piracy has helped that book much more than
       | it has hurt it. It is very widely pirated in torrents in non-us
       | countries from what I can tell from google searches and a
       | longstanding history of emails to the effect "hey your book is
       | being pirated [here]". I sincerely doubt that the overwhelming
       | majority of people who pirate that work did so instead of
       | purchasing it.
        
       | platz wrote:
       | How is piracy defined here
        
       | jimbob45 wrote:
       | Piracy would be much easier to enforce laws for if copyright law
       | didn't protect nearly a century's worth of works.
       | 
       | If copyright law was something more reasonable, say five years,
       | then the MPAA/RIAA could viciously protect everything within
       | those five years and consumers would more likely stay away from
       | those materials given the negativity of the consequences.
       | 
       | The way things are now, you literally _have_ to pirate some games
       | like No One Lives Forever because the copyright law around them
       | is so convoluted that no one knows who can legally sell it
       | anymore. Even worse if you 're looking for something like The
       | John Larroquette Show which can't be found anywhere outside of
       | piracy due to a lack of interest by distributors.
        
       | bluejekyll wrote:
       | "We conclude that piracy and similar competitive shocks push
       | firms to innovate to stay ahead of imitator products, and that
       | this effect is moderated by their existing patent portfolios."
       | 
       | I guess it's good to study that this is the case, but isn't this
       | exactly why companies fight piracy and attempt to patent and then
       | enforce those patents? That is to reduce competition and make it
       | easier to extract value from what they've produced?
       | 
       | Basically, isn't the premise that if privacy was rampant and
       | patents didn't exist then more people and companies would be able
       | to innovate on the technology without fear of a lawsuit? I think
       | of how stagnant the Eink space is, and how much broader usage
       | might that technology get if it wasn't encumbered by patents
       | (just one example)?
       | 
       | I guess I just don't find this surprising.
        
         | lutorm wrote:
         | It doesn't mean that innovation is to the benefit of the user,
         | though, does it? Maybe all the innovation is in anti-piracy
         | technology?
        
         | kenjackson wrote:
         | "We conclude that piracy and similar competitive shocks push
         | firms to innovate to stay ahead of imitator products,"
         | 
         | In the case of piracy, this seems like an odd statement. If I
         | can pirate your software and make it widely available then
         | you're innovating to stay ahead of yourself -- which I'll just
         | immediately pirate when you release it.
         | 
         | How does me innovating quickly, help me stay ahead of people
         | simply copying my product? Unless the innovation is around how
         | to monetize my product, even in the face of piracy (e.g., ads,
         | support, SaaS) -- in which case those things don't really imply
         | that I need to innovate on the actual product itself.
        
           | azalemeth wrote:
           | I think a lot of it depends on the rate of piracy -- and also
           | the circumstances under which it is done. I've met people in
           | Denmark who genuinely pay attention to, and don't skip,
           | youtube ads because they want their content creators to get
           | more financial support. At the same time, at least one of
           | these people has told me that they pirate software to try it,
           | before buying it. They tend not to like DRM but will happily
           | "give things a go".
           | 
           | It's not hard to imagine that a small percentage of piracy
           | actively helps spread a product, and if you get 1000%-fold
           | growth and your piracy rate goes from say, 1.5% to 5%, you've
           | still massively won overall. If you're a person like my
           | Danish friend, it's not hard to imagine that if anything the
           | "try before you buy" piracy then means that products are
           | evaluated more on their features, if anything _increasing_
           | competition to innovate between market leaders in their
           | segment.
           | 
           | The company only goes bankrupt if _literally everyone_
           | pirates everything -- or, more likely, transitions into a
           | FOSS-style support+ business model. (Which, IMO, is far more
           | preferable than software-as-service)
        
             | katbyte wrote:
             | Also if individuals pirate your software and learn that
             | then that's the preferred let's say image/video editing
             | software when they work the company more the likely buy
             | legal licenses for them
        
           | 13415 wrote:
           | I don't know what _their_ explanation is, but one explanation
           | would be that people frequently use piracy to try out and
           | compare products. Later, once they have decided on the best
           | product, some of them go legit. That 's certainly how I used
           | piracy in the past.
           | 
           | So the customers are way better informed with piracy, which
           | forces companies to innovate more quickly to stay ahead. They
           | can no longer rely on deceptive marketing practices and
           | market dominance.
        
           | PaulHoule wrote:
           | Specifically that article says that firms vulnerable to
           | piracy file patents, copyright registrations and trademarks.
           | 
           | All of those are tracers for innovation because they're not
           | supposed to give you any of those for something that isn't
           | new, but they are really weapons one would use against
           | pirates, imitators, competitors, etc.
        
         | deeviant wrote:
         | > Basically, isn't the premise that if *privacy* was rampant...
         | 
         | God could you imagine such a world, one which privacy was
         | rampant, I can't but I wish I could.
         | 
         | Sorry couldn't help chuckle at your typo.
        
           | bluejekyll wrote:
           | ha, I didn't even notice that and even reread it a couple
           | times.
           | 
           | can't change it now ;)
        
         | danShumway wrote:
         | I think you might be slightly out of touch with mainstream
         | attitudes/beliefs about what the effects of software piracy
         | are.
         | 
         | Personally, it is extremely common for me to find people who
         | argue that piracy reduces innovation and discourages businesses
         | from building new things. I don't have survey data on this, I'm
         | just speaking anecdotally, but I suspect that's the prevailing
         | view among most Americans. I'm not sure if that attitude is as
         | prevalent in other countries.
         | 
         | There is a certain group of people where this will basically
         | just confirm some of their priors and it won't be surprising at
         | all. But there is another group of people who (I think
         | sincerely) believe the opposite, and (keeping in mind that this
         | is only one study) I do think it pushes back against their
         | priors in a potentially interesting way.
        
           | pishpash wrote:
           | It may do both, increase small, incremental innovations and
           | decrease large, R&D-heavy innovations.
        
           | bluejekyll wrote:
           | Maybe I am out of touch. There is a different question and
           | that's if piracy is good. That's a little harder to answer.
           | 
           | Piracy is potentially good for the overall market (free
           | innovation, etc). Piracy is probably bad for the
           | company/person who produced the good (ie they lose revenue
           | and have to innovate themselves more to stay ahead of free).
           | 
           | The second has been debated at length, and I know I honestly
           | don't know the answer. I used to see a lot of arguments that
           | piracy can be used as a means to get access to free training
           | and lock-in with a specific product, but then when they go
           | legitimate, they then acquire real licenses. But the
           | producing company has to make it clear that if people don't
           | go legit, then they will get sued.
           | 
           | It's kinda like the SaaS freemium -> enterprise license
           | models some providers use.
        
             | dogleash wrote:
             | I don't think it's an argument that "piracy is good", but
             | instead piracy serves as a sort of test case to explore the
             | extent to which current boundaries of intellectual property
             | law is "promot[ing] the Progress of Science and useful
             | Arts."
        
               | bluejekyll wrote:
               | Right, and that seems to be the ultimate question. Which
               | side of the scale should society fall on some of these
               | questions. Is it better for the majority to progress more
               | quickly without those intellectual property laws, or do
               | we need the profit motive for companies to innovate and
               | therefor be rewarded for that innovation.
               | 
               | It doesn't feel like an either or, but more of a how far
               | in either direction should the laws be.
               | 
               | As a question, would software patents be more acceptable
               | to people if they were limited to 2-5 years rather than
               | the 15 (I think) they are now?
        
             | zepto wrote:
             | > Piracy is potentially good for the overall market (free
             | innovation, etc)
             | 
             | I haven't seen any innovation done by software pirates
             | other than what's necessary to circumvent protections.
        
               | fishtacos wrote:
               | Innovation doesn't have to be done by the software
               | pirates, merely nudge it along:
               | 
               | 1. Circumventing anti software piracy measures and
               | learning that performance is gained instead of lost when
               | the DRM is bypassed. -1 for DRM, net gain for users.
               | 
               | 2. Pushing for new features alongside the updated DRM, a
               | net gain for users.
               | 
               | 3. Finding holes in the initial DRM and plugging them. A
               | net gain for developers/publishers.
               | 
               | It's a win/win any way one looks at it.
        
               | zepto wrote:
               | As I said, the only innovation I am aware of that piracy
               | has produced is circumvention.
               | 
               | You seem to be confirming that.
        
               | AlotOfReading wrote:
               | I think the typical argument is that piracy makes things
               | accessible to everyone, and the market as a whole
               | benefits from that greater audience. Think of how many
               | photographers got started with a pirated copy of
               | Photoshop or reverse engineers with Ida.
        
               | zepto wrote:
               | Sure, which is only true if the maker actually gains from
               | the greater market share indirectly.
               | 
               | This is almost certainly only going to be true in a tiny
               | number of cases - e.g. photoshop, where commercial users
               | generally don't use pirate copies, and do get sued if
               | they are found to.
        
               | 10000truths wrote:
               | Sometimes that circumvention itself has the side effect
               | of QoL improvements. Like that Resident Evil 8 crack that
               | significantly reduced framerate stuttering when the DRM
               | calls were patched out.
        
               | zepto wrote:
               | Just one bug fix that multiple people are mentioning is
               | hardly evidence of innovation.
        
             | silisili wrote:
             | I agree with the premise of the second. The big money comes
             | from pros and corporate concracts, who generally (but not
             | always) avoid pirated software.
             | 
             | I feel if MS and Adobe weren't so lenient on piracy, they
             | wouldn't have captured/held the worldwide market in their
             | segments at such an astounding rate.
             | 
             | For a smaller, non-monopoly, it may be a very different
             | case though.
        
               | 0xcde4c3db wrote:
               | At one point, Bill Gates openly admitted that this was
               | part of Microsoft's China strategy [1]:
               | 
               | > Although about 3 million computers get sold every year
               | in China, people don't pay for the software. Someday they
               | will, though. And as long as they're going to steal it,
               | we want them to steal ours. They'll get sort of addicted,
               | and then we'll somehow figure out how to collect sometime
               | in the next decade.
               | 
               | [1] https://www.latimes.com/archives/la-
               | xpm-2006-apr-09-fi-micro...
        
               | bserge wrote:
               | Don't know about China, but that worked really well in
               | Eastern Europe.
               | 
               | After things stabilized and the west "brought law and
               | order", a lot of companies started paying MS licensing
               | fees. Because everyone grew up on Windows and Office.
               | 
               | Same for Adobe.
               | 
               | Then there's this bullshit:
               | https://www.inputmag.com/culture/peak-design-accuses-
               | amazon-...
        
             | jokethrowaway wrote:
             | As a complete remorseless pirate (as in, I download stuff
             | but I never uploaded anything I purchase) and as someone
             | whose software was pirated (causing me to go out of
             | business, for that specific venture), I think piracy is bad
             | purely because someone is infringing on a contract.
             | 
             | If customer A buys my software and accepts a contract which
             | say not to redistribute, he can't go and break that
             | contract unpunished. I should be able to legally persecute
             | customer A, if I can prove a breach of contract happened.
             | If someone is re-sharing that content or if they're
             | downloading it, they never had a contract with me and they
             | should be able to do what they please.
             | 
             | Sure, that's bad for me, but that's part of doing business.
             | Eventually the price of things will go up to account for
             | people pirating.
             | 
             | Also, if I'm selling so much of my software that I can't
             | possibly trace and persecute all the users leaking my
             | software, I think we should accept a certain amount of
             | piracy and loss of revenue. Call it, a natural tax on my
             | software being so successful.
             | 
             | Still, the government shouldn't be able to intrude on
             | customer A privacy, internet providers shouldn't be
             | compelled to release data on customer A. DMCA is absolute
             | cancer and the proof that the government is not doing the
             | people's interest but the interest of big media
             | corporations.
        
               | kmeisthax wrote:
               | This is a strange argument that I've heard repeated
               | often: "repeal copyright and just treat it as an NDA". I
               | personally would consider that _worse_ than the status
               | quo.
               | 
               | NDA-based copyright-like ownership has three different
               | problems:
               | 
               | - If the group of people with the software is large -
               | like most mass-market works - enforcing the NDA will be
               | absolutely impossible. Someone will leak, and that
               | someone will _not_ have the financial means to remunerate
               | you for your subsequent loss of exclusive ownership.
               | Making an example of them will not work. Once leaked,
               | people will be able to legally republish without
               | repercussion, so such NDAs are far weaker than even the
               | weakest copyright.
               | 
               | - If the group of people with the software is small -
               | like most specialized software - enforcing the NDA will
               | be so successful that the software will effectively never
               | enter the public domain (in both the intelligence and
               | copyright lawyer sense of the word). Archival of old
               | works will be impossible purely because the NDA did it's
               | job too well. Such NDAs would be far stronger than even
               | today's life+70 monster terms.
               | 
               | - In either case, traditional exceptions to copyright
               | such as fair use, first sale, the merger doctrine, scene
               | a faire, and so on will not apply. The NDA will prevent
               | disclosure of even things that would not be considered
               | copyrightable. Want to benchmark the software? Sorry, you
               | can't, it's all under NDA - just take our performance
               | claims as gospel.
               | 
               | The underlying problem is that copyright is supposed to
               | be a bargain: the public agrees to respect a limited
               | monopoly over publication of the work in exchange for
               | creating a market that encourages more works to be made,
               | as well as unlimited access to the work once the monopoly
               | expires. In a sense, this bargain has been broken.
               | Copyright owners lobbied for hilariously long ownership
               | terms, right around the same time that individuals got
               | access to commercial-grade publication tools that made
               | piracy easy and interesting to do. "Just NDA everything"
               | proposes abandoning the bargain entirely in favor of
               | extremely authoritarian yet difficult to enforce controls
               | on all works; something that we should not accept if we
               | want to continue to have a market for works of mass
               | culture.
        
           | 0xfaded wrote:
           | Economists use number of patents as a measure of innovation,
           | and my reading of the abstract was basically "piracy
           | increases innovation where innovation = patents".
           | 
           | I think a more interesting study would compare software
           | innovation in China vs the West. Anyone who remembers
           | computer vision pre ~2013 will fondly remember that simple
           | things like image descriptors and occupancy grids are
           | patented. "Patent encumbered technology" was jargon.
           | Thankfully a lot of the more egregious patents from the
           | dotcom era are now expiring.
        
             | belval wrote:
             | Eh this approach still exists at FANG companies, it seems
             | like we stockpile patents to ensure that if we get sued by
             | another FANG-level company it's mutually assured
             | destruction.
             | 
             | The legal department at a startup I used to work at was
             | pretty open about it.
        
               | rhino369 wrote:
               | It can also be lucrative if business wanes. Companies
               | with near monopoly power already printing money
               | regardless so they don't bother. But a lot of once-great
               | companies turn to monetizing patents.
               | 
               | Some of the most successful patent trolls buy portfolios
               | from companies that were actually engaged in the field at
               | the time.
        
             | jimmySixDOF wrote:
             | >image descriptors and occupancy grids
             | 
             | What can actually qualify for a patent in Software seems so
             | unclear and variable. Did someone invent the concept of
             | "Infinite Scroll" and just not file for IP protection so it
             | gets used everywhere? Or is it copywrite of the actual code
             | that delivers one Infinite Scroll embodiment in
             | JavaScript_Flavor_1? Pirating software as in cracking a
             | keygen of some whole branded Application is very different
             | from launching a relabeled product clone with some reverse
             | engineered feature parity. By some interpretations you
             | literally can't implement a text box without infringing on
             | IP. And I don't see a way, in advance, to figure out what
             | patents overlap with your proposed innovation... you just
             | appear to cross your fingers, file, wait for the examiner
             | to pick a few citations out of a hat, and if you get past
             | that rejection, then you launch said feature (if you
             | haven't already) and review the take down notices case by
             | case. The discovery process can definitely be improved but
             | a lot of innovation takes place in spite of the as-is
             | patent system; not as a result.
        
         | zepto wrote:
         | > isn't the premise that if privacy was rampant and patents
         | didn't exist then more people and companies would be able to
         | innovate on the technology
         | 
         | No, because innovating on technology costs money and if you
         | can't get a return on that, the incentive to invest is
         | eliminated.
         | 
         | The eInk situation is indeed dysfunctional, but the fact that
         | one patent holder is bad at business doesn't mean much more
         | than that.
        
           | reificator wrote:
           | > _The eInk situation is indeed dysfunctional, but the fact
           | that one patent holder is bad at business doesn't mean much
           | more than that._
           | 
           | Whether they're bad at business or not, it's certainly not a
           | situation that makes me feel like the patent system is in my
           | best interest.
        
             | zepto wrote:
             | Sure, but the point is that no system is going to be
             | perfect, so just this one example doesn't tell us much.
        
       | maram wrote:
       | Steve Jobs always quoted Picasso
       | 
       | "Good artists copy, great artists steal"
        
       | chadlavi wrote:
       | The title of this post was changed from a good summary to the
       | pretty much nonsense businessspeak title of the article.
        
       | spir wrote:
       | As anecdotal and loosely related point, in the ethereum community
       | we think that the unprecedented rapid pace of innovation is
       | largely attributable to the need for smart contracts (and often
       | their UIs) to be open source or users won't trust them.
        
       | coretx wrote:
       | Piracy, according to the United Nations Convention on the Law of
       | the Sea (UNCLOS) of 1982, consists of any criminal acts of
       | violence, detention, or depredation committed for private ends by
       | the crew or the passengers of a private ship that is directed on
       | the high seas against another ship, ...
        
         | renewiltord wrote:
         | If you read the article you'll find that this is exactly what
         | it's talking about. Ships of yore developed techniques to fend
         | off pirates which eventually led to faster, more reliable
         | shipping.
        
       | azalemeth wrote:
       | For the avoidance of link rot, the full paper is at
       | https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3912074
       | 
       | A populist lay summary: https://torrentfreak.com/software-piracy-
       | triggers-innovation...
        
         | dang wrote:
         | We've changed the URL to the paper from
         | https://www.uspto.gov/ip-policy/economic-
         | research/publicatio..., which is a list of papers that this one
         | currently happens to be at the head of.
         | 
         | We've also changed the title above from "US Patent Office
         | Report concludes software piracy increases innovation", which
         | broke the site guidelines against editorializing: " _Please use
         | the original title, unless it is misleading or linkbait; don 't
         | editorialize._"
         | (https://news.ycombinator.com/newsguidelines.html)
        
           | azalemeth wrote:
           | My apologies Dang - consider me educated for next time.
        
             | dang wrote:
             | Appreciated!
        
         | koeng wrote:
         | Avoidance of link rot should probably be done with the paper's
         | DOI number - https://dx.doi.org/10.2139/ssrn.3912074
        
       | durovo wrote:
       | If you consider SAAS and locked-down subscription models to be
       | innovative, then this is definitely true.
        
       | 6gvONxR4sf7o wrote:
       | They're using the release of BitTorrent as a natural experiment
       | here, seeing what happened before and after with a combination of
       | a few techniques (matching, DID, and IV). I'm not convinced that
       | this will say anything more than "after the 90s and early 2000s,
       | firms started doing XYZ." The causal statement here is plausible,
       | but the methods are unconvincing.
        
       | tablespoon wrote:
       | From the summary at https://torrentfreak.com/software-piracy-
       | triggers-innovation...:
       | 
       | > The research doesn't look into specific types of innovation.
       | However, it mentions that in more recent years the subscription
       | model has been embraced by an increasing number of software
       | companies.
       | 
       | If the "innovation" is concentrated in anti-piracy
       | technology/practices, then the real implications may be quite
       | different from first glance.
        
       | duxup wrote:
       | What if the result is everything is a rental / SaaS?
       | 
       | For the record I really don't mind SaaS products, they work great
       | in many situations.
       | 
       | I just am not sure the innovation is the innovation we want.
        
         | jokethrowaway wrote:
         | Once we get tired of SaaS, the market will create standalone
         | expensive software.
         | 
         | Even if I have to say that the subscription model is pretty
         | good for B2B: fixed expense per month, someone to bother if
         | things don't work, instead of spending my own employees time
         | keeping infra up and debugging bugs.
         | 
         | I don't like SaaS for my personal use, I prefer to pay once,
         | keep forever and fix on my own (for similar reasons to why I
         | like cooking my own food instead of ordering take out all the
         | time).
        
           | duxup wrote:
           | >the market will create standalone expensive software.
           | 
           | Maybe even hardware, like a Pi server that serves up the app
           | even...
        
         | MeinBlutIstBlau wrote:
         | They suck for two reasons: primarily now I need an account for
         | everything I use with separate billing charges. It becomes
         | annoying to manage. The other reason the egregious costs these
         | companies charge. For a compiled version of software back in
         | the day, I could get something that worked for $30-$100 and it
         | would last years if not a decade. Now, some of these places are
         | charging like $3-$20/month! Software value has not increased
         | that much. If I gotta start paying for TODO apps and calendar
         | managers, I'm just gonna move to Org Mode. The majority of what
         | software provides is a nice gui environment to manage text. No
         | clue how this crap can be worth as much as it is aside from
         | supporting multiple platforms and enabling web based usage.
        
           | abj wrote:
           | We need a SaaS that manages all of these SaaS subscriptions
           | and accounts! That's something I'd pay $10 a month for
        
             | MeinBlutIstBlau wrote:
             | I think it's because software has finally reached a point
             | where everybody is adequate at using computers that new
             | problems have developed compared to the ones that existed
             | 10-20 years ago. So now the people who have no idea how to
             | use a computer (or are willing to learn) they just pay for
             | a SaaS.
        
             | renewiltord wrote:
             | The big guys are trying to get this in their store models
             | so that they can pull their 30% cut.
        
         | BigMajestic wrote:
         | I wish more companies would follow the way of open source,
         | self-hosted free version and paid version hosted in the cloud.
         | Win - win.
        
         | Animats wrote:
         | _What if the result is everything is a rental / SaaS?_
         | 
         | That's the paper's conclusion. They see the beginning of the
         | piracy-friendly period as the release of BitTorrent in 2001,
         | and the beginning of the end in 2013 when Microsoft Office 365
         | came out.
         | 
         | Now everything is tied to central control, who can turn off
         | your service any time they want to.
        
       | noasaservice wrote:
       | Hm. I'm sure it can. However, in my line of work, pirated
       | software leads to furtherance of proprietary and
       | unexportable/hard-to-export file formats that further push others
       | to piracy.
       | 
       | Switching to FLOSS systems and open data formats sidesteps this
       | whole issue. With open formats, open specs, and FLOSS
       | implementations means that data is now portable and easier to
       | write translators for. And data is not a roach-motel model, where
       | proprietary software uses that model as a form of lock-in.
       | 
       | Tl;dr. Starting off makes sense to pirate. Longterm, FLOSS makes
       | more sense for your data and content.
       | 
       | (And, software piracy online feels like the equivalent of
       | jaywalking in terms of "criminality". But this is just a personal
       | feel.)
        
         | rhn_mk1 wrote:
         | Best of both worlds, pirate FLOSS :)
         | 
         | Which makes sense, given that FLOSS is a legal response to
         | overbearing copyright, and piracy is the practice of ignoring
         | it.
        
       | p1mrx wrote:
       | I only read the abstract, but why do they conflate "product-
       | market imitation" with software piracy?
       | 
       | Doesn't imitation mean creating new software with similar
       | functionality? That would be relevant for patents, but not
       | copyright.
        
       | renewiltord wrote:
       | Ah, now to see if we have to decide between:
       | 
       | - Software patents are not a sign of innovation
       | 
       | - Software piracy is good for innovation
       | 
       | I have this here in meme form https://i.imgflip.com/5lspw4.jpg
        
       | AlbertCory wrote:
       | "Second, we build a dataset that matches the financial
       | information of publicly traded software firms with (1) R&D
       | expenditures and patent, copyright, and trademark counts, and (2)
       | a unique dataset of pirated software."
       | 
       | That's fine, but they're measuring what _can_ be measured easily
       | and calling it  "innovation" (at least in the headline), rather
       | than anything meaningful. Having more patent filings doesn't mean
       | you're "innovating" more. Nor does spending more on "R&D" which
       | is mostly just an accounting convention.
       | 
       | At two companies, I worked on getting more patent filings,
       | because that was seen by management as The Thing To Do. In both
       | cases, we would ask the engineers "what have you done lately?"
       | and then decide if any of that might be patentable. Usually this
       | involved paying a bounty to the "inventor" if a patent
       | application was filed, and another if the patent actually issued
       | (4-8 years later).
       | 
       | In one case for awhile (Google Maps), they were actually paying
       | people a bounty for submitting an _idea_ for a patent, even if no
       | application was filed! I was on the committee that decided if the
       | idea was (1) great, file for sure, (2) pretty good, maybe file,
       | (3) OK but don 't file, or (4) so bad you don't even get the idea
       | bounty.                 (*Full disclosure: I'm pretty sure this
       | system isn't in effect anymore.*)
       | 
       | I've written elsewhere [1] about the dubiousness of software
       | patents, so I don't need to explain how they have nothing to do
       | with "innovation."
       | 
       | [1] https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2399580
        
         | MadcapJake wrote:
         | > I've written elsewhere about the dubiousness of software
         | patents, so I don't need to explain how they have nothing to do
         | with "innovation."
         | 
         |  _Nothing_ to do with innovation? I 'm not convinced. If filing
         | more patents and spending more on R&D is not a sign of (at
         | least a desire for) innovation, what is?
         | 
         | I think the biggest challenge with studying this is that how to
         | innovate is going to be wildly different from one firm to the
         | next. Did this study use the best general measures they could?
         | I would say so.
        
           | AlbertCory wrote:
           | > "the best general measures they could"
           | 
           | If you can't put a number on a phenomenon that actually means
           | anything, then saying "well, this is the best we have" is
           | pretty weak.
           | 
           | You also said "at least a desire for" which may be your out.
           | 
           | I can give other metrics that have been studied, but I think
           | the onus is on you now to justify your claim, or maybe admit
           | that one can't define "innovation."
        
       | ortusdux wrote:
       | I'm pretty confident that Adobe came to this conclusion a long
       | time ago.
        
         | vxNsr wrote:
         | And yet, they've made it much more difficult to pirate their
         | suite now...
         | 
         | I disagree with anyone who thinks Adobe, Microsoft, or any
         | other software vendor made pirating easy bec it would boost
         | long term sales.
         | 
         | 100% of executives are focused on this quarter and nothing
         | else.
         | 
         | Bad licensing enforcement was just a by-product of focus, and
         | resources. As we see pirating O365 is impossible, pirating the
         | offline Office suite is doable but much harder than it once was
         | and usually requires buying a volume key instead of downloading
         | a crack. I know pirating Adobe is technically possible but from
         | what I've seen requires a lot more work and isn't foolproof
         | like it once was (download Adobe, click crack on crack
         | software).
         | 
         | In general good software licensing frameworks have been
         | commoditized and it's pretty easy to add to your product. Idk
         | anyone who would look at that and think rolling their own
         | broken solution is better bec it could lead to better long term
         | sales.
        
           | duxup wrote:
           | >And yet, they've made it much more difficult to pirate their
           | suite now...
           | 
           | Nobody said you get the innovation you want. :(
        
             | vxNsr wrote:
             | As in pirating encouraged innovation in licensing? Fair.
             | But it's not really the argument that most people
             | understand the headline to mean.
        
           | MeinBlutIstBlau wrote:
           | I think because of their stranglehold and egregious fees,
           | it's opening up other companies to compete reliably now.
           | Although businesses just don't want to get away from the
           | "Photoshop" or "Premier" name so they just shell out for it
           | when they can easily get by without for way cheaper.
        
             | vxNsr wrote:
             | Right but that would be an argument away from pirating, ie
             | straight competition encourages innovation bec ppl don't
             | want to pay the egregious fees for software that they don't
             | fully utilize.
        
       | makotech222 wrote:
       | Literally ask any marxist about what intellectual property does.
       | We've known this for about 150 years now; private property is a
       | parasite on society.
        
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       (page generated 2021-09-03 23:00 UTC)