International Law

Piracy and Silver Bars

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The Economist has an interesting take on the grey market, putting in a plug for pirates:

"In other industries, piracy can help to open up new markets.

Take software, for instance. Microsoft's Windows operating system is used on 90% of PCs in China, but most copies are pirated.

Officially, the software giant has taken a firm line against piracy. But unofficially, it admits that tolerating piracy of its products has given it huge market share and will boost revenues in the long term, because users stick with Microsoft's products when they go legit.

Clamping down too hard on pirates may also encourage people to switch to free, open-source alternatives.

"It's easier for our software to compete with Linux when there's piracy than when there's not," Microsoft's chairman, Bill Gates, told Fortune magazine last year."

Uh, this would be the same monopolist that installs almost a root kit on new PC's to determine whether you are genuine or not?

But, this question about borrowing the authority from name brands, absconding with rent in economic terms, is really quite fascinating.

It is squarely in the field of fraud as parody of rationality - so I guess I better think about it!

Full post as published by Misleading Advertising Law on July 21, 2008 (boomark / email).