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Piracy is a problem, but some companies can survive, and others cannot. Is there a list of these companies somewhere? I think it would make for an interesting case study. Thanks in advance.

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+1 Definitely an interesting question. – Terrance Dec 7 '10 at 18:02
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This isn't answerable, though. How do we determine that a company went out of business because of piracy? Most people blame anything but themselves when a business fails, at least publicly. Even if a company's products were good, and sales low, we can't conclude piracy, since there are other reasons that can cause that. – David Thornley Dec 7 '10 at 18:11
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I'd be curious to know how one could determine that a company went under because of piracy (and nothing else?) though. Edit: OK David beat me to it with a better comment. :) – MetalMikester Dec 7 '10 at 18:12
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Either Visicalc or Wordstar (I forget which, maybe both) supposedly went through at least a very hard time because of rampant piracy. It got to the point that some suggested instead of charging for the software, they should charge for the manual and give away the software. I read that so long ago it may be urban myth. But either way, it reinforces David's assertion that we really can't say it was piracy that put them out. In particular the US GAO questioned a lot of the funny accounting that goes into claims of piracy's impact. news.cnet.com/8301-31001_3-20002348-261.html – MIA Dec 7 '10 at 19:31
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One thing to consider is that piracy doesn't always hurt the the company who's software is being pirated. Take Photoshop: its target market is professionals. As a matter of professionalism, they nearly all have paid Photoshop versions. However large numbers of people have Photoshop for everyday use. If they couldn't pirate any programs, they certainly wouldn't buy Photoshop. It's overkill and out of their price range. It's companies like Corel who aim more at home users who suffer instead of Adobe when home users pirate the professional product. – Macha Dec 7 '10 at 23:30
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6 Answers

I don't think any company can point to piracy as a single point of failure.

Take for example Avast, whose antivirus product was pirated and a single licence shared on over 774,000 times - see Single software licence shared 774,651 times.

They took the view that people using pirated copies of their software were not "criminals", but potential buyers - read the article for more about this.

I'm not saying no company has ever gone out of business due to piracy, as there almost certainly has been some, but I think piracy is only 1 out of a compounding number of factors that cause companies to collapse.

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+1 for the moderate and realistic approach – Rook Dec 7 '10 at 20:19

Stac Electronics sued the pirates and won, but couldn't ever recover.

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Whoa... That brings back some memories. – MetalMikester Dec 8 '10 at 0:21

On the flip side, Eagle computers went out of business because they copied part of the IBM BIOS back in the 80's.

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What goes around, comes around. – Maxpm Dec 7 '10 at 19:29

It was relatively well-known the Microsoft Windows 3.x and Microsoft Office 3 through 95 were easily pirate-able, or the CD key could easily be faked.

While I worked at Microsoft around that time, the general consensus was that, if people rip-off Microsoft's software, they won't bother to buy the competition's, so that'll help us kill off the competition, so no need to chase after them just yet.

Businesses tended to get audited and organisations such as the Business Software Alliance made examples of big corporates found to be under-licensed, so this ensured a revenue stream from the business community.

Once the products were ubiquitous, the 25-digit licence keys and internet activation started. It almost seems like a deliberate strategy from the beginning, but I think that it evolved this way.

I don't recall any Microsoft products requiring a dongle or licence key at the time, yet hardware dongles were very popular with the competition.. I forget who the competitors were...

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I think no otherwise successful company was ever going out of business because of piracy alone. But some already struggling companies had surely more problems because of piracy. That means also, that there will be no clear case, where you can assign the problems only to one reason, including piracy. So I think such a list you want, that all the candidates will always be in discussion, because it was maybe piracy the last drop ... or something else.

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Well the Amiga is well known to have been massively pirated as their was no way to limit floppy disk copy at the time, and there was a lot of games. So the piracy occured a lot even in school yards.

Commodore died with it.

[fixed, thanks commentors]

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Commodore the company owned Amiga the brand. Commodore eventually died. Read Commodore & Amiga saga on wikipedia for details. en.wikipedia.org/wiki/Commodore_International – user2567 Dec 7 '10 at 18:38
Commodore went out of business mainly due to competition from Apple and Microsoft (arguably better products at the time), not necessarily piracy which was rampant on all platforms even then. – Philip Regan Dec 7 '10 at 19:28
The new Comodore computers that have been announced last year were not the same company? – Klaim Dec 7 '10 at 21:52
No - someone bought the rights to the name. – JBRWilkinson Dec 8 '10 at 0:07
The Commodore name has been sold and re-sold a few times in the past 15 years or so, if I'm not mistaken. – MetalMikester Dec 8 '10 at 0:22
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