Interesting discussion. My own two pence is this.
I think both the "Software pirates are the moral equivalent of kitten stompers" and the "f1ght th3 p0W3r, information was meant to be free, d00d" segments are more than a little lacking.
Illegal file transfer is different from physical theft in several ways. For one thing, in the eyes of the law, if you're guilty of "unauthorized duplication, performance or distribution of a creative work", they can put you in jail for five years and fine you hundreds of thousands of dollars- in the U.S., anyway. Whereas if you five-finger discount a game from a brick-and-mortar store, that's petty larceny, and you're unlikely to do anything more than pay a fine for a first offense.
So, there's that. Now, the other thing that I don't think I've seen brought up in all the almost-there-but-not-quite metaphors is this: if someone steals $50 from your wallet, or even your bank account, chances are pretty good you're going to notice eventually. If someone downloads a hacked game, it's entirely likely the game's creator will never know.
...Except it isn't just one person; it's you, and this guy hawking it in a bazaar in Iraq, and this other guy selling it out of a car in Moscow, and every person in this college's Computer Science Class, and... To a factor of a hundred, until some marketing guy looks at the anticipated sales versus the actual sales and goes, "Now hang on a minute...?!"
To be clear, I think illegal copying is wrong, in as much as it denies content providers just compensation for their work. I think the semantic point as to whether it should be called theft is largely irrelevant. And I think that self-righteously demanding that those who illegally download games recognize their place among the burgulars and muggers and hang their heads in shame is neither particularly productive nor some brave and tremendous blow for justice.
I also think "perceived losses", and the idea that every game downloaded is a lost sale, the exact equivalent of a game stolen from a brick-and-mortar shelf, is delusional at best. Software pirates are morally grey at best and complete misfits at worst, but the content providers- including the MPAA, RIAA, and ISA- haven't exactly decked themselves in glory, either. The very nature of the law presumes, rightly or wrongly, that every downloader is passing the illegally obtained work on to others, and the nature of current copy protection often assumes that every person *legally* obtaining the work is planning to as well.
The net result is often that people who plunk down their hard-earned money are struggling to make their legally purchased games work, and people who download them off torrents for free are getting, in some ways, a superior product.
Both the relevant laws and the copy protection are getting increasingly draconian, and the net effect is mostly that the pirated versions look more and more attractive, the infringers are harder to catch because an absolute interpretation would put their numbers in the high multi-millions, and the people who buy legally feel, quite legitimately, that they're being treated like criminals (perhaps more so than many of the actual criminals.)
If we're willing to allow the powers that be to strip away a lot of reasonable privacy protections and the like, the relevant companies can make a modest hunk of change from a massive number of lawsuits before going out of business from the combination of bad PR and locking up large numbers of former customers. But I rather like to imagine that the games companies would rather be in the business of game-making than lawsuits.
We're overdue for a massive overhaul of the laws that govern this digital age. More sensible laws would not only benefit the public who actually have to live with them, but they might actually be possible to enforce. A few modest suggestions:
We need clear consumer rights, including a strong, firm definition of Fair Use, and an understanding that those rights CANNOT be overwritten by anything written in a EULA. That should include redress for games that are using the public as unpaid beta-testers or won't run at all, and the ability to return software. No one should ever be worried about posting their toddler spinning around to the strains of "She Spins Me Round Like A Record" on YouTube or clips of gameplay in an unauthorized game review or the like. We also need some kind of legal protection for modders, at least those who aren't using illegally acquired assets in their creations. "I feel a need to punish those bad, bad media companies" is kind of a lame excuse, but let's disarm it.
The friend-of-a-friend-of-a-friend who downloads a game should be ignored. The guy who makes a torrent of their pre-release beta available a week before release should get nailed to the *wall*. (Not literally, but you get my drift.) Feel free to install draconian measures on your cubicle floor, serial numbers and encryption on your gold master disks, armed guards beside anything that can burn a disk at the factory. Just not on the Internet, please.
Copyright on most works available digitally should be, say, five years. Let's face it: the vast, vast majority of an entertainment product's revenue-generating lifespan is in the first two to three years after release. If a company continues to distribute AND SUPPORT a product, that copyright can be extended, perhaps to as much as twenty years. A lot of old media is lost, but for collectors: after a reasonable interval, the public interest should trump a tiny profit potential. Crack open Windows 95 and see if any of the conspiracy theorists were right. Let Computer Science classes reverse engineer and disect old gaming engines to learn how they work. If you can splice together Beverly Hills Cop and Star Wars into a coherent whole that's more entertaining than either original movie, be my guest.
As far as the companies themselves, my suggestion is this: digital distribution is starting to take off; keep at it. I think a lot of people really will buy the legal version if it isn't too onerous to do so. Knocking a few bucks off in recognition that they *aren't* paying for shipping, packaging, materials, a glossy manual, and the like, would also be appreciated. And if you want to ease off the early piracy, flood the torrents on release with a version that comes complete with a nasty drive-wipe of a virus. (Non-propogating, please.)(Okay, I don't know how popular that last one might be, but I figured I should offer the media providers some sort of sop.)