[comp.sys.amiga] Software Sales Strategies vs. Piracy

frankd@pro-pac.cts.com (Mike Snook) (08/17/89)

It's a shame that developers don't get their fair rewards for their time and
money.  I want my software written by professionals, which means they have to
be able to make a living at it.  Too many people are pirating software.
  It's also a shame that you can't change human nature.  If you offer most
people a chance to steal something at virtually no risk of getting caught,
they'll find some way to see it as "not stealing".  The HonorWare market will
never catch up with the Pirate market because of human nature.
  Hollywood knows they can't stop people from making pirate copies of their
movies, too.  there are differences in the analogy, a Big Screen presentation
can't be matched by anything in the home, a copied tape isn't as good as the
original, neither of these things are true of pirated software, but my point
is that movies get pirated anyway and Hollywood, instead of playing on
peoples' "Honor" to pay for shareware, or asking their producers to make
public domain movies, has implemented marketing strategies that give them a
piece of the action.
  Hollywood makes big bucks farming their movies out to HBO, Cinemax, etc.,
not to mention the video rental stores.  They know darn well that most folks
are going to make illegal copies of movies from these sources but they get
what they can out of it.  I'm sure they'd love it if people would pay $79.95
for every movie they
'd like to own.  They know they can't, so they take what they can get.
  Why don't software developers adopt a similar strategy by selling programs
to stores that will rent them out for a fraction of their purchase price, and
take a royalty from every rental?  Developers would make more money (possibly,
I haven't the time to make a federal study of it) and the general population
has an opportunity to obtain software WITH the manuals.  There will of course
always be that elite group who will have no less than the original with the
original packaging either because of elitism or natural honesty.

strictly opinion, strictly mine, go ahead and sue me I have no Money.

andrews@cos.com (Andrew R. Scholnick) (08/17/89)

In article <208@crash.cts.com>, frankd@pro-pac.cts.com (Mike Snook) writes:
> It's a shame that developers don't get their fair rewards for their time and
> money.  I want my software written by professionals, which means they have to
> be able to make a living at it.  Too many people are pirating software.
> [...]
>   Why don't software developers adopt a similar strategy by selling programs
> to stores that will rent them out for a fraction of their purchase price, and
> take a royalty from every rental?  Developers would make more money (possibly,
> I haven't the time to make a federal study of it) and the general population
> has an opportunity to obtain software WITH the manuals.  There will of course
> always be that elite group who will have no less than the original with the
> original packaging either because of elitism or natural honesty.
> 
> strictly opinion, strictly mine, go ahead and sue me I have no Money.

Another approach has been adopted by the Computer Club Company.  
All software has an encoded, unique, serial number which is tracked by sale and
updated (if sold through a store) when the registration card arrives.  There
is NO copy protection.  The serial number is so the company knows who to sue if
a pirated copy is found.  Two encoding strategies are used, one for the serial number which is 
displayed at run-time, one for the (several) copies embedded in the code which
are not directly accessed as data.  They are encoded to make it more difficult to
find (and alter or remove) them.

NO SOFTWARE IS SOLD FOR MORE THAN $20.  No matter how fancy.  The two software
products currently (Nancy, a spelling checker and Zelda, a print/merge utility)
are both $16.95.  Costs are kept low by using inexpensive (minimal) packaging
and putting all documentation on disk.  The theory here is that reasonably priced
software wont be stolen, it will be purchased.  So far this strategy seems to have
worked.

I know this for a fact.  It's my family business.

It is my opinion that any 'single disk' software product sold WITH printed documentation
for more than $35 is price-gouging.  An added $5 per extra disk is reasonable.  I don't
care how "useful" the product is or how much effort went into producing it, if it
is a good product, you will profit at these prices.  For complicated products which
require some customer support, I believe the buyer should be given a small amount
of free support, followed up by paid support if they desire it ($35-40/hr is good).

Just my personal/business opinion. ;-)

Please no flames... 

(a quick plug: The Computer Club Company is giving away a free -$10 value- Computer
Club Foam Bat with each software purchase - for a limited time)

The Computer Club Company EMail address (on USENet) is ...uunet!cos!amicc!ComputerClub

ARS.
-- 
- Andrew R. Scholnick @ Corp. for Open Systems, McLean, VA -- andrews@cos.com
- {uunet, sundc, decuac}!cos!andrews -- Everything I write blame on me, NOT
-- my employer. - "Adventure is when you toss your life on the scales of
-- chance and wait for the pointer to stop." - M. Leinster (First Contact)

kudla@pawl.rpi.edu (Robert J. Kudla) (08/17/89)

In article <21585@cos.com> andrews@cos.com (Andrew R. Scholnick) writes:

In article <208@crash.cts.com>, frankd@pro-pac.cts.com (Mike Snook) writes:

> Another approach has been adopted by the Computer Club Company.  All
> software has an encoded, unique, serial number which is tracked by
> sale and updated (if sold through a store) when the registration
> card arrives.  There is NO copy protection.  The serial number is so
> the company knows who to sue if a pirated copy is found.  Two
> encoding strategies are used, one for the serial number which is
> displayed at run-time, one for the (several) copies embedded in the
> code which are not directly accessed as data.  They are encoded to
> make it more difficult to find (and alter or remove) them.
 
Not to pop your balloon or anything, since I think you sound like the
ultimate in honest businessmen, but it's been tried with
Gods-know-how-many programs before on different systems..... if you
are shipping product to retail sources, and someone buys that product
and doesn't send in the registration card (I rarely do), then the only
thing you'll know is that someone who bought it from Random Store Inc.
pirated it. However....

> NO SOFTWARE IS SOLD FOR MORE THAN $20.  No matter how fancy.  The
> two software products currently (Nancy, a spelling checker and
> Zelda, a print/merge utility) are both $16.95.  Costs are kept low
> by using inexpensive (minimal) packaging and putting all
> documentation on disk.  The theory here is that reasonably priced
> software wont be stolen, it will be purchased.  So far this strategy
> seems to have worked.

While your packaging and method of documentation make your program a
prime candidate for piracy, I can't imagine doing so. A productivity
package (especially something like a spellchecker) for $17 is just too
reasonable. Do you make a decent profit? If I were ever to become a
developer, that is very close to my own strategy..... besides the fact
that fewer people would tend to pirate a BBS that cost twenty bucks,
it would help to undercut the bozos who charge $150 for a piece of
crap. (Are you listening, PP&S?)

> It is my opinion that any 'single disk' software product sold WITH
> printed documentation for more than $35 is price-gouging.  An added
> $5 per extra disk is reasonable.  I don't care how "useful" the
> product is or how much effort went into producing it, if it is a
> good product, you will profit at these prices.  For complicated
> products which require some customer support, I believe the buyer
> should be given a small amount of free support, followed up by paid
> support if they desire it ($35-40/hr is good).

That's what some of the big companies do even if you *did* pay $500
for the program. Hell, I know software consultants who charge $2000
for a customized software package and then go and charge $70 an hour
for service and support over the phone, even.... At any rate, I can
see where someone who spends $100,000 on R&D might feel justified in
charging a hundred bucks per program, of which they'd take in twenty
bucks or whatever. However, I can't understand why anyone would spend
that much on R&D for something thousands of people have programmed
before (wordprocessors, spreadsheets, BBSes, even art programs). If
you spent 50,000 man-hours on it, there's obviously something
wrong.... (disclaimer: I'm talking one software package here, not,
like, an OS or something)

I applaud you. I'm glad to see someone else has realized that there's
a middle ground between iffy shareware and overzealous pricing.
--
Robert Jude Kudla   <kudla@pawl.rpi.edu> <kudla@acm.rpi.edu> <fw3s@RPITSMTS>
Pi-Rho America  \\        ///  Un-PC quote: Piracy is amoral; pirates who
2346 15th St.    \\      ///  stop because they write code are hypocrites.
Troy, NY 12180   /X\ \\\///  keywords: mike oldfield yes u2 r.e.m. new order
(518)271-8624   // \\ \XX/  steely dan f.g.t.h. kate bush .....and even Rush

pfaff@mercury.asd.contel.com (Ray Pfaff - Oakwood 457 934-8162) (08/18/89)

Mike Snook writes:
>  Hollywood knows they can't stop people from making pirate copies of their
>movies, too.  there are differences in the analogy, a Big Screen presentation
>can't be matched by anything in the home, a copied tape isn't as good as the
>original, neither of these things are true of pirated software,  ...

I've avoided commenting on this string for a long time, since it is really a 
matter of the morality of the people involved with pirating, but why would
you think that a pirated program without documentation or registration  
is just as good as if it were bought with these things?

wayneck@tekig5.PEN.TEK.COM (Wayne Knapp) (08/18/89)

In article <208@crash.cts.com>, frankd@pro-pac.cts.com (Mike Snook) writes:
:   Why don't software developers adopt a similar strategy by selling programs
: to stores that will rent them out for a fraction of their purchase price, and
: take a royalty from every rental?  Developers would make more money (possibly,
: I haven't the time to make a federal study of it) and the general population
: has an opportunity to obtain software WITH the manuals.  There will of course
: always be that elite group who will have no less than the original with the
: original packaging either because of elitism or natural honesty.
: 

You sure have my vote!  This is really a great idea.  However I'm afriad
that it would take the whole industry behind it to make it work.  I'd
be more than happy to rent my programs out at say $1 a day!

                                      Wayne Knapp 

andrews@cos.com (Andrew R. Scholnick) (08/18/89)

> Another approach has been adopted by the Computer Club Company.  
> All software has an encoded, unique, serial number which is tracked by sale and
> updated (if sold through a store) when the registration card arrives.  There
> is NO copy protection.  The serial number is so the company knows who to sue if
> a pirated copy is found.  Two encoding strategies are used, one for the serial number which is 
[...]
> Please no flames... 

> (a quick plug: The Computer Club Company is giving away a free -$10 value- Computer
> Club Foam Bat with each software purchase - for a limited time)

> The Computer Club Company EMail address (on USENet) is ...uunet!cos!amicc!ComputerClub


OOPS... I forgot to mention:
	The Computer Club Company also offers a free copy of each of its
	software products and publications to any individual providing
	information which leads to a conviction for piracy of any of its
	products.  (This policy has proven to be quite successful at
	curbing software piracy.)

-- 
- Andrew R. Scholnick @ Corp. for Open Systems, McLean, VA -- andrews@cos.com
- {uunet, sundc, decuac}!cos!andrews -- Everything I write blame on me, NOT
-- my employer. - "Adventure is when you toss your life on the scales of
-- chance and wait for the pointer to stop." - M. Leinster (First Contact)

mark@xrtll.UUCP (Mark Vange) (08/19/89)

In article <21585@cos.com>, andrews@cos.com (Andrew R. Scholnick) writes:
> Another approach has been adopted by the Computer Club Company.  
> All software has an encoded, unique, serial number which is tracked by sale and
> updated (if sold through a store) when the registration card arrives.  There
> is NO copy protection.  The serial number is so the company knows who to sue if
> a pirated copy is found. ...

If someone is going to pirate the stuff, they will simply buy it from a
store and NOT send in the registration card!

> NO SOFTWARE IS SOLD FOR MORE THAN $20.  No matter how fancy.  The two software
> products currently (Nancy, a spelling checker and Zelda, a print/merge utility)
Correct me if I'm wrong - and I don't mean to belittle your work - but there
are widely different documentation and support requirements between
different types of software.  'small' utilities can certainly be created and
marketed for much less than Word Processors or Games, but, if the product
were 'marketted' to it's full potential, you would be heaving much higher
costs.  I'd like to see how your approach works when your product line
expands from supporting software to applications.
-- 
Mark Vange				Phone Death Threats to:
PAS Systems - "Plain and Simple"	(416) 730-1352  mark@xrtll
8 Everingham Ct.  North York	"Every absurdity has a champion
Ont, Canada  M2M 2J5		 to defend it." - Oliver Goldsmith

jtreworgy@eagle.wesleyan.edu (08/21/89)

In article <345@xrtll.UUCP>, mark@xrtll.UUCP (Mark Vange) writes:
> In article <21585@cos.com>, andrews@cos.com (Andrew R. Scholnick) writes:
>> NO SOFTWARE IS SOLD FOR MORE THAN $20.  No matter how fancy.  The two software
>> products currently (Nancy, a spelling checker and Zelda, a print/merge utility)

> Correct me if I'm wrong - and I don't mean to belittle your work - but there
> are widely different documentation and support requirements between
> different types of software.  'small' utilities can certainly be created and
> marketed for much less than Word Processors or Games, but, if the product
> were 'marketted' to it's full potential, you would be heaving much higher
> costs.  I'd like to see how your approach works when your product line
> expands from supporting software to applications.
> -- 
> Mark Vange				Phone Death Threats to:

I think this whole discussion was not complaining about the high price of word
processors, but about paying 50 bucks for a GAME which requires as little
support from the company as anything does, and about getting a lousy game when
your 50 bucks have been laid out.
-- 
James A. Treworgy
jtreworgy@eagle.wesleyan.edu
jtreworgy%eagle@WESLEYAN.BITNET

brianr@tekig5.PEN.TEK.COM (Brian Rhodefer) (08/22/89)

In article <345@xrtll.UUCP> mark@xrtll.UUCP (Mark Vange) writes:

>
>If someone is going to pirate the stuff, they will simply buy it from a
>store and NOT send in the registration card!
>

Would it be possible to prevent this behavior by requiring the purchaser
to register in order to receive instructions for patching his program to
"enable" it?  These patches would be unique, and different for each copy
of the program.

If purchased from a dealer, the "patching" could be done at the time
of sale.  The dealer could pop the distribution disk in his demo machine,
equipped with a modem.  A short program included on the distribution disk
contacts SlickSoftware corporate headquarters, and receives and installs
the one-time-only patch for that particular copy of the software.  Corporate
HQ's computer then duly notes that that particular serial numbered copy of
the program has been delivered to its legal owner.  Perhaps it even solicits
the name/address/phone number of that new legal owner right then&there.

The purchaser tests the "enabled" software for proper functionality,
and, if satisfied, takes it home.  The dealer has the purchaser's ID
on file, (as well as, possibly, his signature on a liscencing agreement)
gainst the possibility that pirated copies of that serial number attract the
attention of the publisher.


This has probably been thought of before, and discarded, but I don't
remember seeing it discussed.


Brian Rhodefer

ain@mentor.cc.purdue.edu (Pat-bob White) (08/22/89)

In article <4704@tekig5.PEN.TEK.COM> brianr@tekig5.PEN.TEK.COM (Brian Rhodefer) writes:
>>If someone is going to pirate the stuff, they will simply buy it from a
>>store and NOT send in the registration card!
>
>Would it be possible to prevent this behavior by requiring the purchaser
>to register in order to receive instructions for patching his program to
>"enable" it?  These patches would be unique, and different for each copy
>of the program.

   Only stops a pirate from stealing the program from the store -- dosen't
stop them from buying it and giving away copies.  If you put a serial number
in each copy, how are you going to actually get your money for the pirated
copies -- take every pirate to court for $30?  Try to take the initial
pirate to court?  And how about the person whose friends pirate his copy.. is
it his fault or not?
   Somehow, I find it hard to believe that anyone can actually devise a way to
*recover* lost income due to piracy -- and that is really what software
developers are worried about anyway, isn't it?  (wouldn't a developer be
delighted at not having to cover duplication costs and hassles, but still
get their money?)
   Perhaps a better approach would be to assume copying and work out a way to
get money for the copies (like let people sell copies provided they send the
developer $5 for each copy sold).


just my opinion... I think :-)
Pat White
ARPA/UUCP: j.cc.purdue.edu!ain  BITNET: PATWHITE@PURCCVM  PHONE: (317) 743-8421
U.S.  Mail:  320 Brown St. apt. 406,    West Lafayette, IN 47906
   Life is a joke.. so laugh at it :-)

cmcmanis%pepper@Sun.COM (Chuck McManis) (08/23/89)

Well gee, why not cut distributors and dealers out of the loop completely ? 
Only sell direct, then you have the name, address, and phone number of 
everyone that bought your program. You can immediately identify pirates,
and if someone says they bought it from someone else, then you can call
up that person and verify it right? Absolute and total control of your
user base. Don't expect very high volumes though...

Just another end of the spectrum of choices,
--Chuck McManis
uucp: {anywhere}!sun!cmcmanis   BIX: cmcmanis  ARPAnet: cmcmanis@sun.com
These opinions are my own and no one elses, but you knew that didn't you.
"A most excellent barbarian ... Genghis Kahn!"

dc@dcpc.UUCP (Don Curtis) (08/23/89)

In  <122978@sun.Eng.Sun.COM> Chuck McManis says:

>Well gee, why not cut distributors and dealers out of the loop completely ? 
>Only sell direct, then you have the name, address, and phone number of 
>everyone that bought your program. You can immediately identify pirates,
>and if someone says they bought it from someone else, then you can call
>up that person and verify it right? Absolute and total control of your
>user base. Don't expect very high volumes though...

>Just another end of the spectrum of choices,

	That wouldn't help in any case, either would serializing disks, 
	enforcing registration at point of sale, keeping lists of what
	distributors got which disks, etc.

	   In order to prosecute someone for theft, you have to prove
	   that Joe Average User, who is the registered owner of disk
	   #12345 made, or permitted to be made a copy of his disk.
	   Simply proving that an illegal copy had serial #12345 does
	   not prove that Joe Average User made the copy.

	   Any of the following could have occured, all of which would
	   leave Joe off the hook:

	   1. Joe could have sold the software to Billy Bluebeard and
	      Billy caused the illegal distribution.  Under most 
		  current software license agreements, it's perfectly legal
		  for Joe to have sold the software to Billy.

	   2. Unknown to Joe, a friend (Bobby Bandit) may have made a
	      copy of Joe's disk while visiting.  Bobby then posted
		  the software on a thieves BBS.

	   3. The dealer/distributor or an employee of the publisher
	      may have made an illegal copy before Joe ever got the
		  software.

	   4. Ben BadGuy may have found the location of the serial
	      number in another copy of the software and changed it
		  (and any code that checked it) to 12345 and then
		  distributed that changed copy.

	   5. Etc...any other set of similar circumstances where
	      Joe had nothing to do with the illegal distribution
		  of the software.

	The only way to prosecute Joe would be to catch him in the
	act of illegaly distributing the software.  If he had a BBS
	with the software posted, fine.  If you could prove he posted
	the software to a BBS, fine.  If you obtained a copy of the
	software from him, fine.  But simply finding an illegal copy
	with serial #12345 is insufficient.






--
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