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Bill Gates on Piracy: "They'll get addicted, and then we'll collect"

latimes.com — The proliferation of pirated copies nevertheless establishes Microsoft products — particularly Windows and Office — as the software standard. As economies mature and flourish and people and companies begin buying legitimate versions, they usually buy Microsoft because most others already use it. It's called the network effect.

Who dugg this? Made popular Apr 13, 2006

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  • Alphabet, on 10/12/2007, -1/+46it's not just microsoft, but also most expensive software. Just look at how photoshop is so popular. No teenager is going to have enough money to buy it. But it's really easy to pirate it. And when that teenager grows up, and works for some art company, guess what software he's going to buy/use at that company?

    If photoshop wasn't so easy to pirate, most people would start using gimp since it's free and has almost the same functionality.
  • p9s50W5k4GUD2c6, on 10/12/2007, -2/+26"The first dose is free" is a perfect summary of the Microsoft product line. Where's rehab did you say?

    Gates told an audience at the University of Washington: "And as long as they're 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."

    How can Microsoft expect us to buy into their DRM/intellectual property right mantra while at the same time they actively pursue a strategy of capitalizing on 3rd world piracy?
  • sithmat, on 10/12/2007, -3/+22If the title didn't mention it was Bill Gates saying that, I would have assumed it was a cigarette company exec.
  • BloodJunkie, on 10/12/2007, -0/+18i'll be sure to keep up the good work. you're welcome, bill.
  • vertigoblue, on 10/12/2007, -1/+19why doesn't the music industry accept this situation as a blessing?
  • SniperGX1, on 10/12/2007, -1/+13I don't condone the use of Microsoft products but he is definately right about this...
  • eklitzke, on 10/12/2007, -0/+9I've found it humorous that Windows makes itself the default no matter what you want to do. And it is ridiculously difficult to change this, and I've found no way to do it personally. Perhaps I am simply not expert enough in dealing with the Windows bootloader, but shouldn't part of being an OS I paid for promote the idea that when I hit the power button on my machine, I should expect it to do what I want, not what a Windows developer thinks is best?
  • millixaw, on 10/12/2007, -1/+9"Hook 'em while they're young."
  • halbe, on 10/12/2007, -1/+9It's important to note that in context he's talking about China.
  • inactive, on 10/12/2007, -8/+15Bet you are loving tux racer...

    seriously the ONLY thing stopping me is gaming
  • Mike89, on 10/12/2007, -2/+9Haha sweet, your Linux box has a cool background! You taught us Windows users!
  • HMTKSteve, on 10/12/2007, -0/+6Sounds like a pusher,

    "don't worry, there is no charge for this drug."
    Later, after addiction sets in...
    "no more freebies for you, you want to play you got to pay..."
  • Osjpr, on 10/12/2007, -0/+5Next version of Windows please. waiting to dowload it for free...
  • therernospoons, on 10/12/2007, -1/+6I believe that despite all their anti-piracy efforts, MS still rejoices at the fact that people would "want" to pirate their creations. Just think about it. The more people pirate it, the more people are using it, hence the more market share and dependence on their products being the de facto standard. Rather than apply it to a standards board, they just strong arm their way into the market place by creating it.

    Also, more proof of them proliferating their software is through official channels, such as their so called MSDNAA (Microsoft Developers Network Academic Alliance) program with colleges and universities. From what I have seen and heard it's 5 bucks a pop on any product. So let's say you want Office 2003. They don't have any other version except Professional, which comes out to five CDs, and at $5/CD or $35. This is all one pays. The CDs are authentic, original, and every little detail of it is exactly like the retail versions you would pay a good $400 for at any given retailer--yes you even get your own Product ID to activate too...All is exactly identical except for a small sentence embedded into the holographic CD label saying, "UNLICENSED SOFTWARE -- Illegal without separate license from Microsoft."

    So what is the point of charging such "fees" saying it is the cost of producing the CD, when you know your just pirating your own software to poor students...what better way to spread your goods legitimately, and say that it's an Academic Alliance (really all it costs these universities and colleges to be a part of that program is less than $3,000 per year).
  • zumpiez, on 10/12/2007, -0/+4Requiring a separate, $1000+ computer to run it has a tendancy to deter that kind of thing.
  • metafore, on 10/12/2007, -1/+5"...somehow figure out how to collect sometime in the next decade." - Bill Gates, 1998.

    so we still have what, 2 years?
  • phpirate, on 10/12/2007, -6/+10I can't believe that he'd actually use reverse psychology on us. Oh well. I'm a linux user anyway ;)
  • eklitzke, on 10/12/2007, -0/+4@deadbaby

    It's even easier than that. Put savedefault after each entry, and then at the line put default saved. That way it will automatically boot the last entry you chose to boot from, so when you add more kernels and change stuff around you won't ever have to change the numbers.
  • evilgod69, on 10/12/2007, -1/+5it makes me feel more guilty... before i was like "yeah, screw microsoft", but now that i realise that i was a pawn in their plan for becoming a monopoly, i feel guilty for using their software.

    I now run Linux ^-^ Ubuntu Dapper Drake Roxxors!
  • cphuntington97, on 10/12/2007, -2/+6Windows XP Home or Photoshop Elements can be had for about $90... it's not THAT bad. Many people have a higher cable bill than that every month.
  • nnonix, on 10/12/2007, -2/+6I know many people who used to pirate windows but then broke down and bought a copy. Whether it be the availability or ease of updates or whatever, people who say they never will buy it, do buy it so I guess Bill is right.

    Secondly, you must admit, its a very liberal position to take on theft. Its not like Windows is a drug or something really addicting. If a person gets hooked it is because it works best for them.
  • Virtualtaco, on 10/12/2007, -0/+4the next decade after 98 is up to 2010... 4 years. Typically when someone uses decade in that context they mean from the next zero to the following zero. I hope that makes sense. Otherwise you would normally say "next ten years".
  • Zipko, on 10/12/2007, -0/+3Exactly, Who cares what they have or how they got it.... as long as they're looking at buying our product later we'll string them along.

    works for selling cigarettes to teens, and letting small fry designers pirate software.
  • Mike89, on 10/12/2007, -0/+3Tuxracer reference is lame. Like Linux guys saying "I hope you Windows users enjoy your 3D pinball/Solitare!"
  • inactive, on 10/12/2007, -2/+5Major case of deja vu on this. I swear I dugg this article a long time ago and that second comment is almost word for word the same comment I replied to before... am I going crazy or what?
  • cmiller1, on 10/12/2007, -0/+3LOL @ Mike89, I'm a Mac user and that was funny ;)
  • phpirate, on 10/12/2007, -1/+4@Anpheus: Valid point, but don't forget that Microsoft makes absolutely no effort to make support for anything but their own products. The boot menu with windows xp is a joke, they are making no effort to allow people to use more than one OS on a machine.

    Linux may be more complex, but its well worth it in the end.
  • deadbaby, on 10/12/2007, -0/+2Anpheus: Checkout the manpage for grub. Basically you just change default 0 to default 1 in grub.conf. Not that hard.. no harder than clicking half a dozen times to modify the NT boot loader in Windows.
  • inactive, on 10/12/2007, -1/+3Great thing is that when I switched to Linux, I found that I had a much less urge to pirate software, since most of it is freely available and easy to obtain!
  • Virtualtaco, on 10/12/2007, -3/+5Two things:

    This is an assumption made by EVERYONE in the software industry. The numbers on piracy losses and Microsoft's presupposed "We'll get them later" attitude is based on one assumption that I just don't think is logical: People who steal software initially had the intent of buying it. If I download a game, If I download a movie. I was never going to go out and buy that movie or game. I have never purchased a stand alone copy of Windows. If piracy were not an option I would be using Linux.

    The second assumption is that the "Network Effect" has anything to do with piracy whatsoever. This effect happens because of the flooding of OEM's, not because people pirate software. The network effect runs on convenience, and pirating software isn't convenient. It can be a pain in the ass, unreliable, and the only reason it's done is for it's cost effective advantage/curiosity, although i think more for curiosity.

    No digg cause this article seems like PR fluff.
  • inactive, on 10/12/2007, -4/+6Burry me pls
  • Anpheus, on 10/12/2007, -8/+10I've found it humorous that most Linux distros make themselves default no matter what you want to do. And it is ridiculously difficult to change this, and I've found no way to do it personally. Perhaps I am simply not expert enough in dealing with GRUB, but shouldn't part of being Open promote the idea that when I hit the power button on my machine, I should expect it to do what I want, not what a Linux developer thinks is best?
  • livestradamus, on 10/12/2007, -2/+4From since I built a pc for home until 2005 I used only pirated software. From the OS all the way down to pretty much every peice of software (except freeware) was a downloaded pirated copy.

    You ask what changed in 2006?
    I switched over to Linux. I've never spent a single dollar on software (& never will)! Hell, I never made any money from pirating I just learnt- consider it a student discount.
    I'm sorry but I grewup basically poor. And now that I have money in 2006- I move over to open source.
    I guess I'm just a cheap stingy bastard or I'm on to something.
    (computing is the birth right for all)
  • gaqua, on 10/12/2007, -1/+3M$? More like £inux
  • msafi, on 10/12/2007, -2/+4even though it's true, i think he shouldn't have said it in public. it'll make some people feel less guilty about pirating.
  • Osjpr, on 10/12/2007, -1/+3Piracy is NOT wrong and immoral. The next leet designer you hire may never have been able to afford photoshop or an os and had to download it. Piracy educates people in poor countries and contributes to their economic wellbeing, so they don't have to share one copy of ms office between the entire company.
  • fkuall, on 10/12/2007, -1/+3I don't know how I could feel less guilty.
  • mdshort, on 10/12/2007, -1/+2I don't see why everyone's getting so mad about downloading software. I mean if your downloading software, your probably broke anyways and they wouldn't see a dime even if you wanted to buy it.

    Personally, if I was a software developer, I wouldn't mind so much if people downloaded my application. Why? Because when the user downloads and installs your application, that user is getting used to your software. And if he's successful chances are if he's going to turn into a business or go professional, he will be looking back, and with the proper funds.
  • salmonmoose, on 10/12/2007, -2/+3To produce a bunch of students who don't actually know how to use any of the software their employers use... DuH!
  • inactive, on 10/12/2007, -1/+2I must agree with this statement actually. I was a macboy myself many years ago, downloaded a copy of windows xp, and ended up buying legit windows software in the end. Though i still pirate movies, and the ones i like i end up buying anyhow , so i see this logic as being sound. Same goes for MS Office, I told myslef i would never buy such expensive software, but having a buisness, it was necessary so i stuck with office.
  • butlershouse, on 10/12/2007, -1/+2Ive been saying this for years. MS has grown popular through piracy, its the same free advertising model that we talk about when we justify downloading music, movies and tv shows. So all lthose employees who had computers at home used a "borrowed" copy of MS products and through this people began to believe that MS was the standard and defacto file format for computers. Now its getting harder ( not impossible ) for joe employee to copy and pirate windows and office and they are settling for buying it since they feel theres no choice.

    When Cori Hartje complains about working five days a week and being paid only for three I wonder if he is working for the same mega million corporation that Bill evidently does. Certainly it sucks to loose that two days fo pay but for those profits id take the hit !

    I dont think MS will ever truly fix their software to make it almost impossible to pirate since it benefits them to continue to set the idea tht they are a standard.

  • sirber, on 10/12/2007, -0/+1@towel401

    Quake 3 engine, by chance ID made it opensource ;)
  • deadbaby, on 10/12/2007, -2/+3This story is a good reason to downlaod a Linux live CD. You may not want to switch but you'll at least know what's out there. You should never limit yourself to just one OS/app for important work. Be familar with your options (via piracy or open source software) so these giant software companies can't ***** you over.
  • samuelcotterall, on 10/12/2007, -0/+1I have a couple of points.

    My university course requires a few Microsoft products: Office, .NET Studio, Windows 2000/XP - Microsoft offer student licenses to the college for both .NET and Windows, which in turn is passed on to us free of charge, which is great. Then, because we are using Windows (even though I'm doing a Web System Design degree and if I were doing this in the "real world" I'd be using a combination of Linux and OSX) all of my modules involve Microsoft based products. Access, for example, is part of Office, and I don't have access to it purely because I don't have enough money - I subsequently failed a piece of databasing coursework because I didn't have enough time to work with it.

    At the end of the day, I'm probably never going to use Microsoft Access to power database driven websites, and I believe we should have been using some free, more web-based, software such as MySQL.

    Again, it's like giving someone an "incher" - you know, we're hooked whilst we are young, and the chances are that I'm always going to need a Windows machine...

    My second point is that software is generally too expensive.

    Standardisation is a great thing. I mean, I know that if I ever go into a web design job, they will probably require some Photoshop skills, but to have developed those skills I need to have had years experience with Photoshop. I'm still using PS 6 because I can't afford to upgrade to CS2. Maybe if the likes of Adobe released educational licenses (the same way Macromedia, Microsoft, and co do...) I'd be able to afford it right now. But the majority of people my age and in my situation don't care about piracy, and will freely download it.

    Software companies should be doing more to make software cheaply available to students, and even people who just want to learn it. Individuals make up a small percentage of the market as it is...
  • inactive, on 10/12/2007, -2/+3"They'll get addicted and then we'll collect"
  • mdshort, on 10/12/2007, -2/+3Actually, when I was younger I was extremely addicted to this sort of thing. I was like 10, and hungry for more useful applications to do the things I was never able to do with paint and notepad.

    Then I found Linux. You have no idea how much better this is for me, there's always a free implementation of everything, and you don't feel bad getting used to it because its OSS.

    Plus, I get to impress all my friends by making fun of their "stale" windows desktops with my XGL enhanced system, with an awsome wallpaper that has a section that makes conky feel natural.
  • xravenx, on 10/12/2007, -0/+1There will always be internet pirates throughout the internet leaking microsoft's windows xp and sources. I don't think that would lead to a loss of 14 billion & I have to agree with LeeVal i think too because windows xp has been out for afew years everyone has it and have not upgraded to anything greater in hope for the new Windows Vista.
  • zumpiez, on 10/12/2007, -1/+2I have a real-world example.
    I pirated Morrowind back when I was in highschool and had no money. I didn't buy PC games back then. They were easy to pirate, and my N64 was sucking up all of my gaming money. However, last month I waltzed into Best Buy and plunked down my $60 for the Oblivion collector's edition, because I was such a huge fan. I also promptly recommended it to everybody I knew who has the means to play it.

    Now it's true that they never got any money out of me for Morrowind. But if I hadn't snagged that back in highschool and been such a huge fan of it, I probably wouldn't have cared enough about Oblivion to buy it, much less expound on its virtues to my friends until they caved and bought it too.
  • phpirate, on 10/12/2007, -4/+5Actually I dual boot. I got winxp here for games. By default, linux starts up.
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