The Economics of Making Your Customers Hate You
The spectacular trial and marketing disaster against the Pirate Bay continued today, with the verdict of the first court (no doubt this will be appealed a few times around).
The three guys from the pirate bay, and their internet co-location and bandwidth provider were sentenced to one year in prison and a total of 30 million SEK of damages today. Whatever you think about the pirate bay, the sentencing of their internet provider is nothing short of incompetency from the Swedish court.
But let’s put that aside for a moment.
Let’s just look at the costs and benefits. These guys now have to pay 30M SEK for their sins of building a search engine. Let’s put that into perspective, shall we? 30M SEK is (with today’s exchange rate) €2,680,246. Contrast this with the spendings of the industry: 75M Pounds is what the record industry spends each year hunting pirates, apparently (only the record industry… who knows what the international movie associations’ and games associations’ and writers’ associations are spending…). With today’s exchange rate, that’s €81,466,099.
That means it’d require 30 such spectacularly unpopular court cases against major file sharing sites won just to win back the costs spent on hunting pirates. Really, who is it that thinks this is a good idea?
In other news, if you’re going to pirate a game, please do it off the ‘net and where it wont hurt the companies that tries to support it for the people who buy games. If you pirate a game and then try to get support for it, you’re a real asshole.