Sunday, October 03, 2004

Interesting Solution to Music and Software Piracy

by Asim Jalis

Here is an interesting solution to music and software piracy. The Potato System. The basic idea is this: replace the adversarial relationship between content originator (producer) and content distributor (pirate) with a win-win relationship in which the producer pays the pirate commissions for distributing the software. The producer provides the accounting infrastructure for collecting payments and paying the pirate. The most prolific pirate now has an incentive to cooperate with the producer. If he cooperates he can make money. If he does not cooperate and shares without the infrastructure he makes nothing. The end result of this is a multi-level marketing (or pyramid) scheme. In this next paper Andreas Schmidt discusses the mathematical properties of this value network. On Incentive Systems Based on Multi-Level Marketing of Virtual Goods.