What would making piracy legal really imply? (I.e. assume there are no IP rights/restrictions/monopolies.) How would a company like Adobe make money that way? This is something worth considering.
How might programmers make money? The people who buy the software (e.g. a database for a warehouse) still needs it, and would still be willing to pay for someone to make it. The company may also try to keep it local and secret, if the warehouse database is a strategic advantage. Or they might share it if they care more about e.g. the better quality that naturally comes from more users (e.g. more bug reports and developers -> fewer bugs).
What about Adobe? They might have to sell the first copy of their software, i.e. setting a price that people pool together to meet before they will release the new version, after which anyone can copy it freely of course (anyone with a computer). This is a very different business model from earning money from the software continuously (i.e. from each copy), and might generate less funds. I don't know if any area uses this business model already?
True: in the absence of anticipation of exclusivity rights, creators would seek ways to repoduce the pseudo-scarcity that socially-recognized exclusivity rights would otherwise provide. And they will generally do so via less efficient means: for example, rather than giving the user a copy of the software, the creator will keep it in a "black box" they control, and simply perform the input/output over a network, incurring strictly more overhead than if they could trust the user to keep their own copy and not distribute it.
This phenomenon mirrors ...
I could discuss the large scale effects of piracy (copyright infringement) for days! From a game-theoretical/utilitarian -, ethical - or any other perspective. I have a set of views and suggestions for topics that could be interesting to break down and address, but instead of writing a long post addressing many different topics, Ill start with the first one in my mind.
Just a thought:
For a subset of activities you could map the question of the ethical status of illegal downloading of a software p (preferred choice) to the existence of a certain kind of element a in a set S, which I'll call the set of alternatives (assuming the risk of getting caught is very small).
Lets say that you for some reason need a graphics editor and your preferred choice is Photoshop CS5. You could either:
In the case you have chosen to illegally download a copy of the software, some people would compare that to stealing (certainly the folks at Adobe). Would that really be fair to say? At least in my opinion that depends on whether or not you would have bought a copy in the absence of the 'download' alternative. Your preferred choice is indeed Photoshop CS5, but that is one among many choices, the rest being in the set of alternatives S. Most users with illegal copies wouldn't pay the 650$ when there are free alternatives. Those alternatives may be much less attractive with less features but many of them would still do the job.
So if there exist an a in S, such that you would prefer a over p in the absence of alternative 2, then in a game between you and Adobe, the choice a would not be Pareto optimal. Your utility is maximized by choosing p (downloading Photoshop), Adobes utility left unchanged. --> Maximizing total utility (ignoring potential side-effects, such as effects overall attitude towards piracy and so on)
Today there exists an S for almost anything.
Whats your opinion on this in regards to utility maximization (utility of society). Can we really break it down like this looking at the individual case?