- IP theft hits the small guy first. The main competitor of the mainstream
products becomes pirated copies of the mainstream product and smaller
competitors are eliminated.
- The 'user' thinks why buy - or even try - a not-definitive operating
system, word processor or music album from a newcomer when the definitive
product is available free. Even if Linux or Open Office is free that doesn't
give it a market advantage over a pirated version of Windows or Office so
their market advantage is set at nought. Likewise heavily marketed, familiar
music and movies are available free on P2P networks so what price would a
new band or movie maker set their works at to make people be attracted or
try a new market?
- A corollary is the piracy kills disintermediation for the small guy by
disproportionately hitting those who do not control their own physical
outlet chains or networks and those who don't have a strong marketing
machine to drive consumers to their 'packaged' products.
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