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   Business News>Magazines>ET Magazine>Between the Lines: In support of
   piracy

Between the Lines: In support of piracy

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   Between the Lines: In support of piracy
   ET BureauLast Updated: Apr 24, 2011, 05:33 AM IST
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   Synopsis

If people were pirating the software, they were at least using it, and this
could someday translate into real market share once these countries
developed.

   ET Bureau
   Setting: In 1998, Microsoft's dominance is at its peak, with more than
   90% share of the PC software market. Yet, in emerging economies like
   China, 90% of the market is overrun by pirated software.
   What happened: Speaking at University of Washington, Bill Gates said:
   "Although 3 million computers get sold each year in China, people don't
   pay for our software. Someday they will, though, and 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." Gates & Co took a stand that piracy wasn't all that
   bad. Their reasoning: if people were pirating the software, they were
   at least using it, and this could someday translate into real market
   share once these countries developed. As China got richer, computers
   got cheaper and Microsoft lowered its prices for operating systems.
   Today, after a few decades of piracy, Microsoft is the market leader in
   China.
   What it means: For a large profit-making company, it makes sense to
   acquire new customers for free. Grab mind-share and market share first,
   revenue share will follow

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