People rarely talk about iPhone app piracy, but when they do, it sounds devastating: 90% piracy rates, $450 million in lost sales, etc. Here's the truth: App Store piracy isn't a big deal—and it never will be.
With these shockingly high reports comes the general air that developers are being marauded and pillaged by Viking hordes and that Apple isn't doing enough to stop it. This resonates! Developers don't control much about the App Store, so if the entire app protection system has been cracked—which it has—you'd expect the looting to be wholesale; the impact on developers to be immediate and devastating; and the problem to be grave indeed.
And yet the piracy issue seems to be dying. The story behind the lack of a story, it turns out, is that iPhone piracy is nowhere near as serious as many people say it is, and that before long, it may not be a problem at all.
How It Works
It's tough to talk about iPhone app piracy without tacitly endorsing it. The mere mention of DRM cracking methods and application sources is—or rather, was—enough to send people looking, and presumably, stealing. But look at the piracy subscene today reveals that, like the jailbreak scene it's a part of, it's just not the same as it used to be.
Kicking off your career in app theft isn't too hard, and it'll only take a few minutes of Googling to get the full instructions. Still, I'll keep this as abstract as possible. Here's how you do it:
• Jailbreak your iPhone or iPod
• Open Cydia, the jailbreak equivalent of the App Store, and add a particular download source that isn't part of the default lineup
• Download two apps: One that lets you crack apps you've purchased for the benefit of others; and another that lets you install cracked applications yourself
• Download cracked apps to your heart's content, from various sources around the internet
At the peak, there were sites that aggregated huge numbers of download links together into an easily browsable website, which meant that once your phone was cracked, you could tap through these websites like you'd browse the App Store—links to the latest apps were plentiful, and you could snag that game you just read about on Gizmodo within a day or so, tops.
The most popular of these sites, called Appulo.us, disappeared just last month, leaving pirates without a centralized resource for apps. Soon, torrent sites and carbon copied link-dumps picked up the slack, at least for people dedicated and savvy enough to find them. So, yeah, piracy is alive, to be sure. But how serious is it?
The Problem
I wanted to find out how bad piracy was, so I went straight to the developers. I started with the types of apps I thought would be least vulnerable, just to set a baseline: Productivity apps. The verdict? Yes! Piracy happens!
"Roughly 10% of our paid app users are coming from piracy." That's Guy Goldstein, CEO of PageOnce, the company behind Personal Assistant, a top-selling organizational app. This is pretty stunning, if you think about it. Personal Assistant is available in a fairly full-featured free version, and as useful as it is, it's not the most glamourous of apps—it's a utility, not a flashy game. The paid version tracks a little high for a productivity app, at $7, but not matter how you slice it, Personal Assistant isn't the most obvious target for piracy. Nor, apparently, is it a serious victim: "Although i think piracy is generally bad and negatively effects companies, for us it's not big issue—our business model is based on purchasing, but also advertising. The more users we have, the better." Right, so piracy is happening here, but it doesn't really matter. Let's move onto the people who you'd really expect to be getting ripped off.
I contacted TomTom, whose navigation apps start above $50. They were cagey. Cagey and brief:
TomTom takes piracy very seriously. Per corporate policy, we do not disclose information about our ongoing efforts to disrupt software theft.
So I moved on to their direct competitor, Navigon, whose MobileNavigator North America app runs $90:
Navigon is well aware of hacked iPhone Apps. As with any other software, it is only a question of time when applications are being hacked and distributed illegally. There's no security mechanism available to prevent this 100%. Since hacking of additional application functions, which are available through Apple's In App Purchase mechanism, is more difficult, this helps to better secure Apps from software piracy. Our legal department is watching this very thoroughly and Navigon will fight piracy with all legal means.
Less cagey, and more ragey. But this is an official position—a conversation with a Navigon rep left me with the impression that while they don't condone piracy, obviously, it wasn't exactly the Issue of the Day. Ripe targets that they are, nav companies don't seem to be losing sleep over this. Which leaves the game developers.
What apps are more pirateable than games? They're shiny, they're extremely popular, and they're often expensive. Surely the EAs and Gamelofts of the world are the hardest hit, right?
On record, they basically clammed up. Off the record, though, they were a bit more free. A rep from one of the largest studios—you've probably played one of their games if
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