Notch, of Minecraft Fame, recently wrote a sober blog entry about the reality of digital piracy. In it he reminded us that piracy can act as a form of advertisement, either directly, when the person who took the software decides to support the copyright owner, or indirectly, when more honest people hear about the benefits of the software through the person that took it, and buy copies of their own. The full blog entry is here.
He also states that he would, of course, prefer people to buy his work and support it, because the more money he gets the more likely he will be able to develop more software, but at the same time, the reality of digital copying is such that direct copyright enforcement takes a lot of resources, more than a little company like his could handle.
A potential solution to this popped into my mind. I'll call it a Single Release Bidder Auction, for lack of a better term.
Let me know how it sounds:
The developer of a digital product says that on a certain date, they will release their product if they receive a significant amount of pre-orders. These pre-orders are held in state until the product is released, and is otherwise refunded should the release date not be met. The product is released when the developer decides it will be released, and they use a system similar to eBay to make it work.
In eBay, there is a minimum bid setting which allows the seller to wait until they get a bid that suits them. They can at any time pull the product from the market, even if this minimum bid is met, to their own detriment in reputation and sales. They also need not state the minimum bid amount, if I recall correctly, and this system could be used for my copyright protection idea, only instead of being an amount of money, it would be an amount of bidders.
This private or public number of bidders would be set by the developer, the sale would be announced, marketing would be up to the developer. They could market a lesser version first, to test the market's interest, using this version as a gateway to the full version which will then be announced. This version, whether or not given license to be copied, WILL be copied if it's an interesting product. In a way, this acts as a form of viral advertising, where it lives or dies by the interest of the consumers who got it, legitimately or not.
Should this be the only release though, the developer still has the ability to alter the required bidder number up or down, so that they can push for a higher amount of bidders before they finally release the product.
Once the product is released, that's it. People who missed out may complain, and that will give the developer a chance to set up another pre-order, should they feel enough interest is there. Since setting these pre-orders wouldn't cost anything more than the encrypted service involved in distributing the software, the only risks are in not marketing enough, or not producing an interesting enough product in the first place.
Thus you will have a situation where you refuse to release a product that won't give you enough of a profit. The distribution model can then be changed, including allowing piecemeal purchases, should you want.
The logic behind all of this is to get as many people who want the product on board at once to help the creator to get the money they deserve and the incentive to make more games. If too many people assume they will pirate or legally copy the product and the product is not released, they might rethink their position should the product not be released.
The weaknesses I see in my idea are:
It is heavily dependent upon marketing, whatever form of marketing is used. The consumer community has to know about the benefits of the product and the quality of the developer's work beforehand. This likely has to be done through reputation-enhancing free products showing how well the developer performs, having a strong social network presence, and using digital media outlets to help get the word out.
A related issue is the natural human tendency to want to see the product in action before the decision is made to buy. In traditional piecemeal purchases, some of the more impulsive or faithful buyers will have the product first, and be able to give their evaluation of it. Reviewers, too, will often be given free copies to play and reflect upon. The latter need not be curtailed, though the potential for pirated copies is still there. There may be some apprehension against the product's developer, that they may be trying to release a poor-quality product without the chance for a proper review. Other than review copies, which the developer must guarantee is reasonably the same as the release copy, there could be tiers of releases, allowing those who are willing to pay the chance to use an earlier version of the product, with later products being promised.
The date of release has to be simultaneous, probably by emailing purchasers a key which they can use to get access to a download center. Bandwidth issues aside, this means that getting a pre-order in before the date is paramount. The developer must position the date in a reasonable, memorable way in order to get the maximum amount of response.
Finally, there's always the potential that the developer will under-shoot their product's popularity, with many people copying the original and using it after the initial release. Part of the remedy to this is by still offering a piecemeal sales program AFTER the initial pre-order release date, to help scoop up those folks who will pay for the product. The other is to enhance the current product and release it in a future Single Release Bidder Auction.
Naturally, I welcome any feedback on this idea.
He also states that he would, of course, prefer people to buy his work and support it, because the more money he gets the more likely he will be able to develop more software, but at the same time, the reality of digital copying is such that direct copyright enforcement takes a lot of resources, more than a little company like his could handle.
A potential solution to this popped into my mind. I'll call it a Single Release Bidder Auction, for lack of a better term.
Let me know how it sounds:
The developer of a digital product says that on a certain date, they will release their product if they receive a significant amount of pre-orders. These pre-orders are held in state until the product is released, and is otherwise refunded should the release date not be met. The product is released when the developer decides it will be released, and they use a system similar to eBay to make it work.
In eBay, there is a minimum bid setting which allows the seller to wait until they get a bid that suits them. They can at any time pull the product from the market, even if this minimum bid is met, to their own detriment in reputation and sales. They also need not state the minimum bid amount, if I recall correctly, and this system could be used for my copyright protection idea, only instead of being an amount of money, it would be an amount of bidders.
This private or public number of bidders would be set by the developer, the sale would be announced, marketing would be up to the developer. They could market a lesser version first, to test the market's interest, using this version as a gateway to the full version which will then be announced. This version, whether or not given license to be copied, WILL be copied if it's an interesting product. In a way, this acts as a form of viral advertising, where it lives or dies by the interest of the consumers who got it, legitimately or not.
Should this be the only release though, the developer still has the ability to alter the required bidder number up or down, so that they can push for a higher amount of bidders before they finally release the product.
Once the product is released, that's it. People who missed out may complain, and that will give the developer a chance to set up another pre-order, should they feel enough interest is there. Since setting these pre-orders wouldn't cost anything more than the encrypted service involved in distributing the software, the only risks are in not marketing enough, or not producing an interesting enough product in the first place.
Thus you will have a situation where you refuse to release a product that won't give you enough of a profit. The distribution model can then be changed, including allowing piecemeal purchases, should you want.
The logic behind all of this is to get as many people who want the product on board at once to help the creator to get the money they deserve and the incentive to make more games. If too many people assume they will pirate or legally copy the product and the product is not released, they might rethink their position should the product not be released.
The weaknesses I see in my idea are:
It is heavily dependent upon marketing, whatever form of marketing is used. The consumer community has to know about the benefits of the product and the quality of the developer's work beforehand. This likely has to be done through reputation-enhancing free products showing how well the developer performs, having a strong social network presence, and using digital media outlets to help get the word out.
A related issue is the natural human tendency to want to see the product in action before the decision is made to buy. In traditional piecemeal purchases, some of the more impulsive or faithful buyers will have the product first, and be able to give their evaluation of it. Reviewers, too, will often be given free copies to play and reflect upon. The latter need not be curtailed, though the potential for pirated copies is still there. There may be some apprehension against the product's developer, that they may be trying to release a poor-quality product without the chance for a proper review. Other than review copies, which the developer must guarantee is reasonably the same as the release copy, there could be tiers of releases, allowing those who are willing to pay the chance to use an earlier version of the product, with later products being promised.
The date of release has to be simultaneous, probably by emailing purchasers a key which they can use to get access to a download center. Bandwidth issues aside, this means that getting a pre-order in before the date is paramount. The developer must position the date in a reasonable, memorable way in order to get the maximum amount of response.
Finally, there's always the potential that the developer will under-shoot their product's popularity, with many people copying the original and using it after the initial release. Part of the remedy to this is by still offering a piecemeal sales program AFTER the initial pre-order release date, to help scoop up those folks who will pay for the product. The other is to enhance the current product and release it in a future Single Release Bidder Auction.
Naturally, I welcome any feedback on this idea.