Profiting from Being Pirated by 'Pirating' the Pirates

Pirates are not only copiers, they can also be innovators. They possess skills and a creative capital that allow them to explore new directions. Their innovations can be freely and profitably re-appropriated by the high-end designers of the pirated firms. Creative pirates are engaged in a kind of tacit reciprocity, where they appropriate illegally creations of high end designers and launch modified or new versions that can in return inspire in a profitable way, the designers of the original fashion houses. Moreover, pirates can create a pro-competitive environment that stimulates the innovative abilities of the pirated firm at unexpected levels without piracy. Copyright 2008 The Authors. Journal compilation 2008 Blackwell Publishing Ltd.