The Ten Finger Discount: Philosophy and Ethics of Modern Piracy mjg CarolinaCon 5 March 14, 2009

Who is this guy?! graduated from Rochester Institute of Technology alumni of Computer Science House staff member working on the Hack or Halo crew at ShmooCon as the graphical hacker 0x90

What are we not talking about? How to pirate software Where the best torrent sites are Where to obtain serialz The best places to hide if the feds are after you

Why are we here then? To discuss the following topics: Why do people feel the need to pirate software, music, movies, etc.? Why do people opt to obtain said stuffs? What are we doing to the companies that try to legally provide it? What are the companies doing to try to convince us to buy their products instead of pirate it? Why do they seem to be going about it the wrong way?

Some of the laws of economics… The law of demand: When the price of a good falls, the quantity demanded does not. Usually the quantity demanded rises with a fall in price. as the price approaches zero (free), the demand reaches its peak would it not make sense then to sell music/movies/etc. at a price that is still profitable, but will result in the most consumers demanding it? are the companies doing it now?

Some of the laws of economics… The law of supply and demand: In a *free* market, the equilibrium price of a good is that at which the quantity supplied equals the quantity demanded. pirating proves that the demand is there, but that consumers are unhappy with the price if consumers are unhappy with the price, the market has not reached equilibrium and the price should then change to match the demand

Some of the laws of economics… The law of time preference: People tend to prefer to obtain goods sooner rather than later, and will pay a premium to shift buying from the future to the present. why pay the premium when you have a vehicle which provides the ability to obtain these goods at a cheaper or no price from the comfort of your home? (or neighbors unsecured wireless network)

Some of the laws of economics… The law of cost: All costs are opportunity costs, the true cost being what is given up to get something. when you dont get caught, the cost is zero. when you do get caught, companies are attempting to acquire well above the market value of the goods youve acquired, thus increasing the total cost, and what you give up to obtain the goods.

Some of the laws of economics… The law of economizing: People tend to economize, maximizing gains for a given cost, and minimizing costs for a given gain. $5 in gas, $25 for a DVD, $15 for a CD, $200 for software, 40 minutes of your time… 5 minutes to search for torrent files, 25 minutes to make/eat lunch (which also solves your hunger issue) while you acquire your music, movie, and software…

Some of the laws of economics… The law of economic rationality: Human action is economically rational if ones preferences are consistent and if one economizes. is pirating then economically rational if you consistently prefer to acquire pirated goods, and youve maximized your gain and minimized your cost for it (many goods for zero cost!)?

Why do we feel the need to pirate? Because we can Its a challenge Its our right Better, faster, more, now! The people deserve free stuff

Why do we feel the need to acquire pirated stuff? Because we can Its a challenge Its our right Better, faster, more, now! The people deserve free stuff

But wait, theres more? you cant find this stuff anywhere else dont want to pay for something you might not want to keep because you can get it before it comes out

Are we making sense? why do we pirate some goods and purchase others? risk factor? importance/necessity of the product? in support of those who provided the goods? (developers, artists, actors/actresses, etc.) what about those who provide it in a manner that appeals to everyone? (NIN)

What are we doing to the companies? STICKING IT TO THEM!! Taking away their profit? Or stopping them from covering production costs? Causing them to rethink their business strategies? Causing them to sue the living crap out of us?

What are the companies doing to change our minds? Fear: sue everyone and youll buy our stuff legally and enjoy it! Making it more difficult so youll give up Provide bonuses for legally purchasing their products seriously?

Giving Back if you like it, buy it

The battle rages on…

Credits: The Laws of economics: Fred Foldvary