This article relates the common belief that software piracy is harmful both to the firms and to the consumers. Because of lower profits, with more people buying the copied products, the firms are financially hurt. Because of higher prices employed since their revenue of sales is cut, the buying customers are hurt if they do not purchase the copied products. The model that this article shows, however, suggests that even with significant piracy, firm profits will raise and prices will be lowered for the consumers. In addition, the article calls piracy an efficient "gift-giving" method. In other words, the product is made available to the public to increase its circulation, but it is only given to those who desire the product. The software does not end up being discarded by someone who has no use for it. The author compares piracy to mailing free copies to all computer owners in an attempt by a firm to make his product more well-known. Not only would many of the copies be discarded by those who do not want them in the first place, but the firm also would have had to pay for the copies to be made then distributed. With piracy, the firm receives free advertisement.

            Although this article deals directly with software and piracy, I found that its argument was relevant to my own. Just as pirates serve as free advertisement for the software firms, the pirates in the fashion industry help to circulate news of which are the most current and popular trends. The top designers do not have to pay for copies of their designs to be made known to the public in this way, and they are sure that those concerned about fashion are buying the copies.