Piracy as a Marketing Signal

Taking a controversial stance that piracy cannot be beaten, Matt Mason, consultant and author of The Pirate's Dilemma says current legislation fails to combat piracy and only stifles innovation. Equating current copyright proposals as just as expensive (and ineffective) as the US war on drugs, Mason reasoned that the only way to beat online pirates is by competing - beating them at their own game. Piracy is simply the signal that existing practices need to change, and it should be seen as a huge opportunity.
 
At the nextMEDIA keynote at BANFF on June 14th, Mason traced the history of piracy from the birth of Hollywood to pirate radio in Europe, and showed that each lead to a healthier, more vibrant marketplace. The ‘dirty little secret’ of piracy is that they enhance their community, plugging into gaps in markets and harnessing the power of an audience. Dealing with piracy means taking them on directly, through tactics - instead of legislation. Pirates should be studied, he thinks, because they signal trends and highlight opportunities - big opportunities.
 
Mason pointed out that piracy usually leads to innovation as long as companies respond by copying pirate tactics, which naturally creates new innovations. Portals like Hulu have taken on pirates directly and, like iTunes, are winning through convenience and by building trust, which is important because "you cannot pirate trust." Mason sees transmedia as essentially "pirate-proof" because even as some content gets pirated it inevitably creates demand for merchandise and other related content, some producers could use to their advantage, creating a "positive feedback loop" that benefits everyone.
 
A huge believer in protecting intellectual property, Mason concluded his keynote by begging the audience, "don’t let legal ruin a good remix" - meaning that remixes, mash-ups and other user generated content can be a vital part of marketing -  another opportunity that should be embraced - not feared.

Kevin Fraser