Piracy

We cannot change anything unless we accept it.
Condemnation does not liberate, it oppresses.
- Carl Jung


Software piracy is one of those perennial problems that just refuses to go away, no matter what we throw at it. On one extreme of the debate we have the lollards who proclaim "Piracy is EVIL! Pirates are SCUM!" and say it'll be the death of the industry, despite strong evidence to the contrary (i.e. the industry isn't dead). On the other extreme we find those pirates that seem to warp space and time itself, not to mention logic, to justify their behaviour with ludicrous claims, such as "games are too expensive, so I am right to pirate them" or "I wasn't going to buy it anyway". Obviously such dogmatic approaches are useless and, as with most things, truth and solutions can usually be found somewhere in between.

The way I see it, piracy is just another example of the economic and philosophical problem of free riding. On an individual level it is extremely hard to condemn piracy because if you can get something for free with ease and pretty much no fear of repercussions there is no way somebody could be convinced to part with his money anyway. Of course it is in the interest of the consumer to pay for the product, as that translate into profit for the publishers and developers who can use that money to create more of the products you enjoy, but the free rider problem recognises that short-term individual gains outweigh the long-term effects of the masses. If enough other people pay for the game anyway, it'll make up for you not doing so yourself. It's a little like paying taxes. For the individual there is plenty of reason not to pay your taxes, especially as so little money can't have much effect, positive or negative, on the whole nation, but people must nevertheless be made to pay taxes for the greater good. With games, we must find ways to compel people to pay for them, not just expect it.

Part of this problem I think lies in the perceived monetary value of digital data, i.e. none. Because video games have for so long relied on tangible media carriers, from cartridges to cassette tapes to discs, they have taken their place in society as a commodity, a tangible product. However, what makes the game is, to put it stupidly, a series of 0s and 1s that can be transferred easily on a media carrier of your choice and propagated without loss of quality.

I remember reading "Being Digital" and being struck by an anecdote wherein the author had to give the police an estimated value of the laptop that had been stolen. It has been years since reading the book, so apologies if I don't hit all the finer details. His conundrum was that beside the value of the laptop itself there should be an assigned value to the data on it, namely all his material, all the things he had written. But somehow this is difficult to do. As a society we still see digital data as intrinsically without value. It's just there, you can't touch it, you can't see it, it is worthless.

So when anti-piracy preachers shout out nonsensicals as "you wouldn't go to a shop and steal a DVD" they miss the fact that data isn't tangible. Software piracy isn't at all like going to a shop to shoplift a material item. It would be more like going to the shop with audio recording equipment and recording the music they are playing through the store's PA system to be enjoyed at home at a later date. This lack of a sense of value is not the reason people pirate software but it's the facilitator that makes it easy to justify to themselves. And as society becomes more and more plugged in, even if that is wireless, this is an issue that will need to be addressed. Data has a monetary value. People need to change their thinking to incorporate this philosophy.

So as software creators we need to find other ways to compel customers to purchase our goods, as opposed to simply copying them. How do we go about this?

DON'T try to appeal to or blame pirates
It simply doesn't work. It's a classic free rider symptom that it's difficult to compel someone to pay for something for the greater, long-term good if the alternative appeals so much more. Why pay for a game when it's "freely available"? Of course attacking the problem at the source doesn’t work either; every group of hackers or torrent website that closes down spawns several new ones to take its place. Stopping piracy this way is like nailing a jelly to the ceiling and bombarding all users, including the legitimate ones, with patronising adverts and tedious copy protections simply doesn’t work, as time has told us.

DO entice customers
One of the reasons I have more Gamecube, Wii, GBA and DS games on my shelf than anything else, apart from being a horrendous Nintendo fanboy of course, is because of the wonderful Club Nintendo. Even today I am much more likely to make an impulse buy of a Nintendo game simply because I know I will receive a code which turns into points with which I can get free, tangible gifts. Hell, I've even bought games I've only played once or twice just for such codes! In the old days I would much prefer to own a copy of Ultima than pirate it just so I could have the tea-towel map and excellent bestiaries.
If you can give extra value to your game by adding something only legitimate customers can receive you will still encounter piracy, of course, but at least you're giving something to your customers rather than punishing them with copy protections.

DON'T muck around with annoying copy protection
Copy protection will be hacked. No matter how clever your limited pool of programmers, there are a large number of highly talented hackers out there up to the challenge. The strategy is, of course, to at least try and prevent hacked copies of your game being available in the short period just after the game's release when boxed titles traditionally sell most. If you can have a copy protection system that will at least hold up for the first few weeks you'll have made the bulk of your sales. This is, however, harking back to an increasingly outdated economic model and we have only to look at the record industry to see what happens to businesses clasping to old models, refusing to embrace the new.
On top of that, you are punishing your legitimate customers with all manner of annoyances, from having to have the disc in the drive at all times, having to keep track of numerous codes and keys or even installing malignant software.

DO think of new business models
The brick and mortar, boxed copy version of the game is on its way out, we all hope. But it is exactly these lingering older models that require these Draconian copy protection systems. Downloading games is easy and convenient and, so far, not that expensive. They could in fact be sold cheaper as you are dealing with a different kind of distribution that requires fewer overheads. Korea has seen some success with free-to-play games that rely on advertising and micropayments for additional features for income. Q Entertainment was sadly lambasted for its innovative segregation of Lumines on XBLA, where aside from a basic game players could but the additional parts they wanted for a lower price and ignore those they weren’t interested in. Valve are seemingly building their own download network with Steam, as Sony has PSN and Microsoft has XBL, and Nintendo…well, Nintendo.
Many of these newer models seem at this moment in time more secure and, though not entirely piracy-proof, are a step in the right direction. Though I possibly have the know-how, or could at least acquire the know-how, to hack my systems and play pirated copies of downloadable games, the prices are so low as to be in the impulse-buy category and with the added convenience of instant access I have seen no reason to go through the bother of mucking up my system, especially as automatic system updates could easily negate all this hard work.
Just as iTunes set up a new business for digital music distribution while record companies were clasping at straws to keep the status quo, so are we seeing the gaming world change. With IP addresses, system serial numbers, credit card information and user accounts hopefully the annoying and costly problem of copy protection and piracy can be alleviated if not entirely circumvented.

DON'T keep harping on about the Evils of piracy
We know it's bad. We know studios have closed down ostensibly because of it, though how true that is remains questionable. We know some people like to bandy about words as "scum" and "thieves". Piracy is a fact of software development. Screaming about it won't change it. Changing our business models and the way we look at our customers just might help at least somewhat.

As far as I can tell piracy in Japan would seem to be similar to that in the West. I remember my very first visit to Japan and seeing small stalls on the streets of Akihabara selling “multi-game Gameboy carts”, but these days such blatant illegalities seem to have been replaced with more shady, backstreet affairs. The R4 was being openly sold in shops and has been netting increasing prices due to Nintendo’s legal threats.

All being said and done, there will always be people who refuse to pay for software. There are laws in place to punish these but the effort usually outweighs the rewards, and they know it. In the end all we can do is entice, not pressure, as many people as possible to pay for games legitimately in new ways and accept some people will just never remove that padlock from their wallets. Preaching the Evils of piracy is as constructive as a Japanese progress meeting and vastly oversimplifies the situation to the point of being actually damaging to the debate.

(250th post, hurray for me!)

34 comments:

  1. Good points all in all. I think Steam and the likes are a great indication of how things will be in the future, both for full price games and smaller indie developed fare.

    Look at Audiosurf. It costs less than $10 and a lot of people bought it, as you say, on impulse, played it a few times and forgot all about it (at least I and a few of my friends did) but we still bought it which means the guy who developed it can laugh at our folly all the way to the bank. And all the best to him too since what he created was good enough for us to spend money on.

    Now that the Steamworks SDK has been released I guess we'll see more games taking advantage of the online marketplace as well. If only the big boys would add their stuff to the store (any store) and get rid of the region locking it could lead on to good things all around.

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  2. Still, "preaching" that piracy is bad should be done in order to educate, inform, and enforce the idea to consumers. This goes same for game rating system; there should be a campaign ad on mainstream media to educate parents of the system and advise them of how to follow the guideline.

    Same thing is being done with drugs, smoking, and I think it should be done with piracy as well.

    But for this to happen without side-effects, people should be shown a reliable and convenient alternative. While there are many of them, such as Steam and others, I think it should be more widely advertised to let people know of its existance.

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  3. I see different analogies. If you go back in time, say the 1800s in the western USA or eariler in the UK or Japan you'd find a mostly lawless time when bad people took what they wanted and killed if they needed to with little threat from reprocussions. Overtime governments were created and police systems to stop that and attempt to make it safe for average people to not have to worry about the bad people.

    In other words, we used to believe that stuff was inevitable but eventually decided to come up with systems to prevent it. We didn't just give up.

    Another analogy, there didn't used to be traffic laws nor was there a highway patrol division of your local police force. We didn't have cars so there wasn't any need. As cars were invented and became popular it was recognized that we needed traffic laws and we needed government to enforce those laws.

    Well, now we are in a new era. We have this new thing called the internet that lets a single person do things like spam the entire planet, steal money from a bank without leaving his house or distribute copies of Terminator 4 before it's released. In otherwords, new tech requires new laws and new ways to enforce those laws.

    I'm not saying that therefore piracy is evil or anything like that. I'm only saying that saying it will always be true or impossible to stop is not a valid argument. Other bad things will always happen as well, that doesn't mean we shouldn't try to stop them.

    As for the death of industries. The only reason those industries are not dead is because the pirates haven't made it easy enough. Over time they will though. Anyone who goes to mininova or piratebay knows that at least for popular stuff it's all easy to get. The masses may not all be there yet but the masses didn't use email until about 2003 where as it existed since the early 80s. Internet piracy is relatively new and as you point out, free and easy wins over not-free. iTMS has done okay because it's been free and hard up to this point but it will get easier every day, word will spread and without enforcement there will come a time when iTMS and the like can't compete.

    Whether that will be good thing or bad remains to be seen.

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  4. I'm not quite sure I follow your examples of lawlessness, Gman, especially the traffic law one, which surely is mostly about safety rather than crime. But true, yeah, I might have been leaning too much towards "just give up, you can't win!" in this post, and that is possibly not really my stance. But I would suggest fighting it directly seems pointless. Rather, finding better ways to distribute software as to make piracy either impossible or useless would be the way to go. So not "copy protection" but "copy prevention" as it were.

    Look at video. Since the VCR television stations and film companies have been fighting the recorded medium. What do we have today? Tedious and unskippable FBI warnings in 17 languages on BluRay discs and possibly more record/swapping than ever. So far it seems only the BBC is looking at its own solution with the iPlayer (sadly UK only for tv so far), whereas everybody else is looking at DRM. A little like the record companies before the MP3 market erupted.

    Just saying; look to the future, stop clinging to the past.

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  5. "Look to the future, stop looking to the past" is actually *my* point. We didn't get cars and try to apply the past (horse based rules) to them. We recognized that these new things (cars) needed new rules (traffic laws, stop lights, break lights, head lights, emission standards, noise standards, etc...) We looked to the future.

    So, just because it was okay to copy a vinyl record to cassette tape in a world where that was unlikely to have a big impact doesn't mean in this new world with tech that allows anyone to copy and distribute to the entire world that we should look to the past and say "hey, because it used to be that way it should still be that way". No, like the car, we recognize the situation has changed.

    It's all just bits, well, so is your bank account. You don't think there is actually real physical money in your bank specifically for your account do you? But we enforce not copying those bits.

    Anyway, it will be interesting to see if any of these new things work. I for one will be pretty upset when I can't play my downloaded XBLA or PSN games in 15 years without having to re-buy them.

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  6. gman, you need to not learn your history from Hollywood. The "wild west" was far from lawless. Percentage wise most western towns had fewer major crimes (murder and thefts) than mot modern American cities do today. To put it another way: if Tombstone only had 100 people and Detroit only had 100 people there would be more murders in Detroit than in Tombstone.

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  7. Even if the extreme pirates' logic is a bit stretched, I must say I also doubt the "self evidence" of "data has value and we need laws to drive this point home" if people need to change their thinking to incorporate this philosophy. If you need to change how the entire planet thinks until binary data picks up value, then it does not have value. This is pretty much the exact opposite of the situation with gold, for example. As a metal it is fairly useless, other than for some industrial and fringe applications, but it is perceived as extremely valuable, and therefor it is extremely valuable.

    Put differently, the problem with all intellectual property is that it is entirely imaginary and consensual. The moment society as a group stops believing, in fact agreeing, that a musical score, an action flick, a written book or a stream of 01s has value beyond its actual material cost, it effectively has lost that value.

    Screaming that this is wrong because that's not how it should be is just the tantrum the music industry has been throwing for a while now, not really doing them much good.

    Now I probably sound like the average kid with a fat pipe and justifying his crazy torrent rates; I'm actually a game developer (programming) with 10+ years of experience, and I'm just saying how things look to me.

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  8. The author hits the nail on the head with that anecdote about recording music to listen to later.

    But to my mind piracy belongs to the category of behavioural problems, like vandalism and graffiti. It persists because of the perception that it is acceptable behaviour.

    Part of the problem is that legally speaking piracy really isn't theft in the classic sense. The key element in theft - as defined in the UK definition at any rate - is the intent permanently to deprive somebody of something material. Talking about piracy being 'theft' is therefore unconvincing. Maybe 'fraud' would be a better tagline.

    In any case, since piracy is a behavioural problem then the best way to tackle it *isn't* to complain about the number of people pirating stuff. People are oddly conformist, and the more we are told that lots of people are pirating software, the more of us will feel comfortable pirating. The industry might do better to belittle the effect of piracy and create the perception that it is odd, deviant and (most of all) infrequent behaviour.

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  9. Port Royal existed not because the existence of a bunch of "bad guys" but because pilgrim and another group of good people will need cheap/banned/hard to find goods.

    If you are a kid, then $50 bucks for a single game than you can beat in a weekend is a joke. a skateboard is even cheap.

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  10. I'm a game developer and I'd be happy to use the BBC solution to piracy - that is, taxing the public :)

    What I mean is - I don't have any driving need to become filthy rich. If governments had an Entertainment Tax and created this source of funding from which creators were paid to make games, so that they could all ensure a decent living and keep entertaining the public, I'd be cool with that.

    Some companies would not, and would get out of the market, because they want to make big profits, not just pay the bills and make games. But the indies and the hobbyists would stick around, and games would be wackier and more 'artistic'.

    I don't need to be rich. But I do have to eat and pay my rent. Provide me an official artist's salary to live on and I'm fine with that!

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  11. I don't like all this get rid of boxed games stuff, I will always prefer to have the boxed version opposed to a download, same with music which is why i still buy CD's.

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  12. While engaging in piracy undoubtedly increases one's consumption of digital goods, it doesn't necessarily affect their expenditure on digital goods, which is the only thing a producer needs to worry about. If a producer's game is currently sold for $50 and the pirate is currently only willing to pay $10 for it. The producer is only losing money from piracy if their game will at some point be offered for a profitable price that the pirate would be willing to pay at that point in time. So if, 6 months from now, the game is offered for $10, but the pirate's perceived value of the game has dropped to $6, the producer still isn't losing money on account of the pirate's actions. They're free-riding, yes, but the effect on the producer's revenue is nil.

    Obviously this sort of situation won't hold true for all instances of piracy, but I'd strongly suspect that the vast majority of instances are indeed of this sort.

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