To borrow heavily from the ideas of Glyn Moody (grab a free copy of one of his books here), I would first address what I believe to be a false premise.

The question assumes that piracy is a fixed reality, and that the goal is to find ways to monetize software despite its existence. But what if we flip that assumption on its head? What if, instead of trying to fight piracy, we design business models that make piracy irrelevant?

The software industry’s failure to adapt to the realities of the digital age is a stark reminder of its own inertia. For too long, it has relied on a broken business model that treats customers as mere consumers, rather than as active participants in the creation and dissemination of value.

Instead of trying to prop up the concept of artificial scarcity, the industry should be embracing the abundance of the digital realm. This means recognizing that software is not a physical product, but a flow of information that can be easily copied and shared.

One approach is to focus on providing services and support around the software, rather than just the software itself. This could include offering subscription-based models, where users pay for access to regular updates, security patches, and expert advice. It could also involve creating communities and ecosystems around the software, where users can collaborate, share knowledge, and contribute to the development process.

Another approach is to adopt open-source principles, where the software is freely available, and revenue is generated through customization, integration, and consulting services. This not only reduces the incentive for piracy but also creates a more collaborative and transparent development process.

Ultimately, the software industry needs to stop fighting the tide of technological progress and start embracing the opportunities it presents. By doing so, it can create new business models that are more resilient, more equitable, and more aligned with the values of the digital age.