[Linux-aus] Windows Is Free, The impact of pirated software on free software

[Tim Wegener]

On Thu, 16 Aug 2007 11:06:24 +0930
"Kym Farnik" <kym.farnik at gmail.com> wrote:
<snip>

> Some Extracts I like...

<snip>
 
> "... isn't it in ultimately in Microsoft's interest to allow pirated
> copies of Windows to be out there?"
> 
> I'm not one for conspiracy theories, but the next logical question is,
> assuming I've made some sense up to now, isn't it in ultimately in
> Microsoft's interest to allow pirated copies of Windows to be out
> there?
> 
> The feasibility of that strategy would depend on how well Microsoft
> could balance out letting pirated copies exist for general use, so
> that people felt it was the operating system, while at the same time
> ensuring that a substantial section of the market, mainly companies
> probably, would not want to bother with any potential legal hassles.
> 
> Personally, I don't think that is Microsoft's strategy. It comes with
> some risks that I think they would deem too high. One leaked memo
> about acknowledging the benefit of pirated software would cause chaos
> in all sorts of ways.
> 
> But maybe they don't have to have any kind of official position. If
> cracked software helps keep Windows in business, and virus threats are
> more effective than security measures in keeping cracked software from
> eating too much into Microsoft's bottom line, then one might argue
> that the main mechanisms for Microsoft's success come from outside
> Microsoft. Just enough piracy to maintain dominance. Just enough of a
> virus threat to keep it from getting out of control. That can't be
> said with certainty, but it's food for thought.

Sigh. Sadly it seems that any shady tactics by powerful organisations are labelled 'conspiracy theories' these days. 
Bill Gates openly admitted this strategy way back in 1998:

<quote>
Gates shed some light on his own hard-nosed business philosophy.
"Although about 3 million computers get sold every year in China, but
people don't pay for the software," he said. "Someday they will,
though. As long as they are going to steal it, we want them to steal
ours. They'll get sort of addicted, and then we'll somehow figure out
how to collect sometime in the next decade."
</quote>

http://news.com.com/2100-1023-212942.html

See also:
http://www.neowin.net/forum/index.php?showtopic=452150&mode=threaded
(The archived original LA Times article appears to be stuck behind a pay wall.)

As to why the majority of people use Microsoft, rather than free alternatives, I think this is pretty clearly the dominant cause:

http://en.wikipedia.org/wiki/Network_effect

Tim