Swapping digital copies of movies, software, and music is a fairly common practice. Most people think it's harmless. How does digital piracy hurt consumers?
What will be an ideal response?
Answer: Companies that produce digital media invest revenues in enhancing products and developing new products. Lost revenues from piracy lead to fewer new products for consumers. Companies must also raise prices to ensure enough revenue for product development.
Explanation: Piracy of digital intellectual property such as movies, music, and software directly harms the companies that produce it and indirectly harms consumers through increased product prices and decreased new product offerings.
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