digital piracy, when legal sellers can sometimes control the extent of piracy by implementing digital rights management (DRM …) systems. It is shown that the seller's optimal pricing schedule can be characterized as a simple combination of the zero-piracy … pricing schedule, and a piracy-indifferent pricing schedule which makes all customers indifferent between legal consumption …

. In theory, piracy could crowd out legitimate sales by building file sharing capacity, but could also increase sales …