Piracy is different. There is already a supply of the product freely available at uninflated market rates. Nobody is trying to choke off your supply of Spiderman 2 or Skyrim. Drastically reducing piracy is a much simpler legislative task than eliminating drugs; you simply go after the advertisers who support pirate-based websites, the pirate websites themselves, and make sure to from time to time make an example of one of the downloaders themselves (which creates a fear-based incentive to not pirate). Since there is a parallel supply chain (i.e., the legitimate sales of the product), demand for pirated goods should decrease rather elastically as the risk of consuming and distributing such goods is increased. Whether lawmakers will go down this road or not remains to be seen, but right now all signs point to yes.
Once information is digitized, the costs of replication and distribution are close to nil. This means the open market value of a digital copy of a movie also becomes pretty close to nil. The purpose of digitizing data is easier (and cheaper) copying, storing, processing, and distribution. Welcome, big media, and Ryan, to the free market in the information age.
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