I have always compared the impact of piracy and illegal file sharing in the software industry with that of the content industry.

This just out in Fast Company clearly highlights the impact of piracy on the Software industry at USD 34B vs. USD 6.1B for the Movie industry. Funnily enough the Music industry which complains the loudest about piracy makes the bottom of the list at USD 4.6B.

The software industry, rather than suing their customers opted for alternative strategies including giving their software away by open sourcing it or move it onto the web and create SaaS (Software as a Service). Here is a great presentation sharing some insights on how the software industry embraced

Figuring out the right strategy of giving for your product or service will be critical for you to commercialize your efforts and investments in innovation and development.