It should also be noted that one of their major competitors, Baen, has always been DRM-Free, and having DRM was a competitive disadvantage. With some of Tor's authors also being Baen authors, there was a fair amount of pressure on them internally, I'm sure. So while there may have been a slight increase in piracy (I doubt it), the offsetting increase in sales from customers who had avoided them because of the DRM was more than sufficient to cover.
IAC, Tor is to be commended for dropping DRM, and sticking to it.
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