Thursday, September 4, 2008

Merchant Pirates Strike in Shanghai

Several years ago I read Under the Black Flag by David Cordingly which was about exactly what the subtitle says it's about: "The Romance and the Reality of Life Among the Pirates." The main thing I learned was that unless your name was Sir Francis Drake you probably weren't plundering gold and silver from the Spanish Treasure Fleet. The typical pirate attacked merchant ships full of manufactured goods from Europe. The pirate would then take the prize and the cargo to a friendly port where the cargo could be sold and the bounty on the prize claimed. Not as glamorous as gold, but, as Cordingly makes clear, a much more pleasant existence than serving on a demanding merchant or military ship.

Today the Shanghai Daily reported on the trial of the largest copyright case to hit Shanghai, City's biggest copyright case hits court. These guys are by no means Drakes; they're just selling a basic stolen good, Norton antivirus software. What is amazing is the volume of sales (677,000 units), the price per unit ($15 compared to $24.95 for legitimate product), and a business structure with full time sales people.

Two thoughts:
  1. Did the specialization or business structure contribute to the success of the operation? I'm going with the business structure actively pursuing sales.
  2. Who pays $15 for a pirated copy of an antivirus software when the value of antivirus software is in updates unavailable to owners of pirated copies? I guess the answer is at least 677,000 people, and according to the article the largest client was an American.

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