I think the moral position of "copy anything" is definitely questionable, but time and time again we've seen the actual markets compete in this way. The decline

I think the moral position of "copy anything" is definitely questionable, but time and time again we've seen the actual markets compete in this way. The decline of music sales is practically a case study in this fact. Whether or not someone will openly state that they evaluate the "cost to copy" option is one thing, but how they act is another. I can't claim that I've never pirated a movie or music, thus I have no moral basis for dismissing that position out of hand. I'd take the contrary view. If you don't consider "cost to copy" a market competitor, you're in a whole heap of trouble. Position your business in a way that isn't exposed to this type of alternate-pricing, or be prepared to compete with it.