trying to stay quiet, but it didn't work!
I like Bit's analysis of the problem - the three groups - but I'm not sure I agree with the resolution. If you are in this to earn a living I think you focus on group 3 - the guys that always buy their tools first. I agree about ignoring those that will never pay, but I absolutely sympathize with any developer who wants to try to protect their products. I don't like copy protection schemes, but I am willing to use them to gain access to tools that I need.
This sort of ties into yesterday's big news - but keep in mind that Tascam stopped authorizing installations of GigaStudio. I've read the EULA, but I don't have the background to prove that the did anything wrong. I do think what they did was unethical, they should have created an escrow key that allowed users to reinstall the software. Waves had a similar stumble many years ago, but they learned from it, and made good on the investments their customers made in them.
And that's the real problem with copy protection - I mean is stinks that developers spend time, money or both to protect their products when few if any anti-piracy tools really work, and probably don't even do much to discourage the pirates. But the fact that the honest customers get hurt in the process is far and away a bigger problem. That's why I think focusing on group 3 makes the most sense.
<speculation deleted because it wasn't very helpful>
Quick aside, since Audio Damage was brought up at the beginning. I think they make some of the best audio plugins around. I put them in the same category as SoundToys, Waves, PSP Audioware, and UA - they are fantastic tools that just work.