Producers of computer software are plagued with the problem of "pirating," that is, many people copy software legally purchased by others.The industry estimates that for each legal copy of a program, there are two pirated copies in use.The industry wants strict laws for the enforcement of its "intellectual property rights," but enforcement is obviously very difficult.Economists call this problem

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The problem described in this scenario is nonexcludability, meaning that it is difficult or impossible to exclude people from the benefits of the product. In this case, once someone has legally purchased the software, it is difficult to prevent others from pirating and using it without payment. This is a classic example of a nonexcludable good, and is often cited as an example of why strict intellectual property rights can be challenging to enforce.

Producers of Computer Software Are Plagued with the Problem of "Pirating