I agree that the devil is in the details. But I don't think creating artificial scarcity is necessarily the only way to create a market. There is still a major social component to trade that is too often ignored by economists, and people will sometimes pay even when they don't have to.
I think the case of podcasts is illustrative here. Despite a lack of DRM, a convention of free-as-in-beer, and a zero lawsuits (that I know of), the field has been thriving for 10 years using incentive structures which do not require IP:
- Pure Promotion, such as comedians who put out a free podcast to attract fans for live performances.
- Up-sells, whether for additional premium content, apps, t-shirts, etc.
- Donations, which at minimum can defray overhead costs. (It's worth noting that Kickstarter is fairly indistinguishable from a donation/gift economy, assuming the reward isn't a simple pre-order.)
- Advertising, while a dirty business model for producer and consumer alike, still can pay the bills, especially if ad content is tasteful and targeted.
Now, these methods are by no means the only ones possible, and that's my point. Rather than to try to create scarcity out of abundance, I think we're better off embracing it, and finding new, indirect ways to profit. To re-use PG's analogy, rather than suing the smell-stealer, the restauranteur could invite people to enjoy some free smells, knowing that some would be enticed to pay for a meal. Or he could buy the land next door and rent the space for gatherings, touting free smells. And on and on.
I think the case of podcasts is illustrative here. Despite a lack of DRM, a convention of free-as-in-beer, and a zero lawsuits (that I know of), the field has been thriving for 10 years using incentive structures which do not require IP:
- Pure Promotion, such as comedians who put out a free podcast to attract fans for live performances.
- Up-sells, whether for additional premium content, apps, t-shirts, etc.
- Donations, which at minimum can defray overhead costs. (It's worth noting that Kickstarter is fairly indistinguishable from a donation/gift economy, assuming the reward isn't a simple pre-order.)
- Advertising, while a dirty business model for producer and consumer alike, still can pay the bills, especially if ad content is tasteful and targeted.
Now, these methods are by no means the only ones possible, and that's my point. Rather than to try to create scarcity out of abundance, I think we're better off embracing it, and finding new, indirect ways to profit. To re-use PG's analogy, rather than suing the smell-stealer, the restauranteur could invite people to enjoy some free smells, knowing that some would be enticed to pay for a meal. Or he could buy the land next door and rent the space for gatherings, touting free smells. And on and on.