Like you say, even the most basic markets require external factors like laws to function. The real estate market for example would, I believe, break down if it weren't for laws prohibiting people from trespassing, squatting, etc. The retail market would also break down if it wasn't for the enforcement and existence of shoplifting laws.<p>It seems software is in a position where the existing laws (or the enforcement of such laws, depending on how you look at it) are not adequate to sustain the market.<p>&#62; Unfortunately for digital media, stealing and getting caught are both extremely impersonal acts, so there's very little embarrassment or guilt involved. And getting caught is so rare that the financial penalties are all but meaningless.<p>I think your assessment is absolutely spot on and I couldn't have said it better myself. Right now other than my own personal guilt, there is absolutely no reason for me not to pirate software. The chances of getting caught are extremely slim. I know many people who use pirated software extensively in a business environment and even there they stand almost no chance of being caught - and even if they were there would be very minor consequences. I feel that it's getting to the point where to be competitive in the market you have to use pirated software. How can you stay competitive when those you're competing against aren't competing on a level playing field.<p>I see only two possible solutions to the problem: 1) Some sort of miracle fix from the software industry - for example everything going to the web (in reality I doubt this will happen though) or 2) Actual enforcement and or the addition of new piracy laws so that piracy has some real consequences.