The *Other* Side of (Software) Piracy [10:54 pm]
When is it piracy and when is it just promotion? Interesting to see that it’s getting a little ink: How Piracy Opens Doors for Windows [pdf]
Although the world’s largest software maker spends millions of dollars annually to combat illegal copying and distribution of its products, critics allege — and Microsoft acknowledges — that piracy sometimes helps the company establish itself in emerging markets and fend off threats from free open-source programs.
[...] The proliferation of pirated copies nevertheless establishes Microsoft products — particularly Windows and Office — as the software standard. As economies mature and flourish and people and companies begin buying legitimate versions, they usually buy Microsoft because most others already use it. It’s called the network effect.
“The first dose is free,” said Hal Varian, a professor of information management at UC Berkeley, facetiously comparing Microsoft’s anti-piracy policy to street-corner marketing of illicit drugs. “Once you start using a product, you keep using it.”

