[CLUG-chat] OT: [Fwd: [pm] RIAA + Kazaa]

Benjamin Gay benjamingay at winisp.net
Thu Oct 2 19:51:36 SAST 2003

> On Thursday, 2 October 2003 10:06, Angelo Zanetti wrote:
> > Programmers do get paid regardless of whether the product is pirated or
> > sold.

Not true. Do the math. At the end of the day its a product. The more you
loose through shrinkage the more you have to make it up in other areas.
Simple example if I sell ten units at $10 each I make a $100. Of that a
certain percentage go's towords paying the overhead (salaries, premesis,
equipment etc), another percentage of that is proffit. Now if I sell one
unit and the other nine individuals pirate it I am now maybe not covering
all of my expenses, let alone having the money to start other projects. Not
a hard concept to grasp.

> The shopkeeper still has to pay the distributor for the DVD that was
> so loses a lot more than profit.  To make up that loss, the shopkeeper now
> has to sell maybe 5 more DVDs just to break even.  When a copy is
> nobody needs to sell more just to break even - that is the difference.

You are missing the point here that the distributor now is shipping less
units as the shopkeeper is not selling as much becuase people are pirating
them instead of buying them.b

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