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I have a different take on the matter:
Focus on making sales.
Focus on educating the public on the reality of copyright infringement.
Focus on making a better product.
Do not treat your customers like they are criminals (DRM).
Do not make proprietary formats (vendor lock-in).
Price the product appropriately.
A good example is the music industry. Many seem to focus way too much on “lost sales” in their own mind and can’t focus on the billions made per year instead. Educating the public on the reality of file sharing has a much more positive impact than any amount of DRM every will. Encrypting content does not affect pirates. Encrypting content does affect your paying customers.
Instead of using force in an attempt to stop file sharing I believe that educating the public is much more affective. I am of the opinion that most people are willing to pay a fair price for a good product, especially if they understand the repercussions of obtaining the content without paying for it (the content won’t exist if no one is getting paid). There will always be exceptions of course but focus on the rest of the public first.
Lastly, don’t write ridiculous EULA and/or TOS in an attempt to dictate what someone can or can’t do with a product that they purchased and resides in their own home. Keep it simple and fair.
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