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Explain the bold part to me. How can they expect to sell a product to a market saturated with free versions? Sounds like a loss of "future profits" to me.
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This might not be true any longer, but at one time Photoshop was the #1 most pirated piece of software. Adobe still made huge money despite of this. How many people who pirated Photoshop were actually potential customers who would have otherwise paid $600+ for the software if internet piracy wasn't an option?