>> People treat piracy as a victimless crime because the marginal cost of each item is zero. Imagine extending similar logic to a handbag. If you steal an LV purse you can’t afford, how do you measure damages? The $1,000 marginal cost to physically replicate the purse, or the $10,000 retail price? That basic logic doesn’t change as the marginal cost goes to zero.
> It absolutely does...
I mostly agree with your comment, but you gave up to easily on this part. The basic logic is exactly the same—but the correct assessment of the damage in this scenario is the $1,000 marginal cost to replace the stolen purse, not the artificially inflated $10,000 retail price.
Of course, there is another, more important, difference in play besides marginal cost: the copyright holder is already "whole". Their ability to use their property has not been impacted in the slightest by the existence of additional copies. The concept of "damages" in such a scenario is completely artificial.
> It absolutely does...
I mostly agree with your comment, but you gave up to easily on this part. The basic logic is exactly the same—but the correct assessment of the damage in this scenario is the $1,000 marginal cost to replace the stolen purse, not the artificially inflated $10,000 retail price.
Of course, there is another, more important, difference in play besides marginal cost: the copyright holder is already "whole". Their ability to use their property has not been impacted in the slightest by the existence of additional copies. The concept of "damages" in such a scenario is completely artificial.