To me, the most important distinction here is the "smell" analogy. Whether or not we agree with content piracy, our assent or dissent is largely moot. It's happening, and it will continue to happen. In this sense, moralistic arguments are somewhat pointless. And legislative attempts -- even if successful -- will succeed only in plugging today's leaks. Innovators will figure out new ones tomorrow. Those in the content business need to make peace with this fundamental reality.

But the fact remains: people who invest a nonzero sum of money in the creation of content would probably like some way to recoup their investment. Or else they need to have deep enough pockets, or deep-pocketed patrons, to be able to abide simply giving it away outright.

I suggest that there's a middle ground between giving all content away (no IP ownership, as some advocate for) and trying to stanch the tide of digital distribution altogether. That middle ground involves differentiating content and price based on audience segments. Those willing to pay can pay for the things they want to pay for. Those unwilling to pay aren't going to pay. It's the job of the content creators to figure out three things: 1) what people are willing to pay for, 2) how to optimize that product to that willing-to-pay segment, and 3) how to convert unwilling-to-pay into willing-to-pay.

This strategy involves carrots, not sticks.

At the risk of getting all self-promotey, I wrote a piece on this topic recently, based on some case studies from the music and publishing worlds:

http://www.dvwlr.com/post/18500285071/piracy-doesnt-matter-b...