I think one important thing to take into account is reputation. The beaches
of the world are packed with people selling fake indistinguishable Rolex
watches for a fraction of the price of the real thing but yet the rich often
choose to pay the full ticket.
Of course in the digital world the copy is perfect but on the other hand
wrist watches don't require maintenance and support.
Johanna Blakley did an interesting 15 minute presentation about this issue in
the fashion industry where there is no copyright. Well worth watching,
believe me!
http://video.ted.com/talk/stream/2010X/None/JohannaBlakley_2010X-1500k.mp4
