I'm really gratified that the guy who once wrote, "Obscurity is a far greater threat to authors and creative artists than piracy" has built his business successfully on this same principle.
Initially, I was freaked out by all these copies on file sharing sites. Now, I just ignore it.
Yes, I am a "pirate" if by that you mean I havent paid twice: one for physical and one for digital. And dont get me started on DRM....
http://leisureblogs.chicagotribune.com/turn_it_up/2011/03/sx...
Still though from a security perspective moving security from the network and infrastructure and to the information is highly desiarable. In this, DRM as a concept is not flawed but the implementation. I wrote some ways this could be fixed last year: http://rakkhi.blogspot.com/2010/08/making-drm-practical.html
People understand the value of things. If you give people something they value and want more of, they will gladly pay for it (the value that they see it's worth) because they want you to keep producing. They know if they stop there will be nothing new. So the end-goal is to make people see the value you produce (even if its giving them that thing for free) because instead of instant-value you will get long-term customers.
It's been a good boost to sales.
However, I believe the reference you are looking for was the comic author who was pirated on 4chan. Then he showed up and starting talking with them, and encouraging them. Of course "Pics or it didnt happen" occurred, so Steve Lieber (author/artist) posted the BoingBoing vs 4Chan chart.
"If nothing else, I'm flattered someone thought enough of the book to take the time to scan and post it" - Steve Lieber.
http://www.techdirt.com/articles/20101021/10481211524/comic-...