Re: Your response to point (1). My statement stands. A development cost of $50k is a development cost of $50k regardless of how many copies are sold. Pirated copies do not cost the developer extra production expenses the way stolen physical merchandise would. If someone stole copies of Excel from a Best Buy, there would be costs associated with the packaging, DVD production, distribution, etc. that would need to be absorbed in order to replace the lost product. The only added cost per item online is the bandwidth cost, but that is absorbed by the person distributing cracked software rather than the original developer.