If the pirate derives benefit from it but less benefit than the price and thus does not consume, then there is a deadweight loss. In this case, piracy provides

If the pirate derives benefit from it but less benefit than the price and thus does not consume, then there is a deadweight loss. In this case, piracy provides a net benefit to society. (Studies have shown that the sales-displacing effect of piracy in music ranges from 42% to no effect at all[1]. If all piracy could be prevented, that's an awfully large deadweight loss) [1] http://www.heinz.cmu.edu/~rtelang/SmithTelang.pdf http://www.heinz.cmu.edu/~rtelang/SmithTelang.pdf