Noob to the board- found this thread and had to weigh in. For the record, I'm an attorney who deals with copyright issues, largely in the entertainment (music) industry, currently working on an MBA in Sports & Entertainment Marketing issues.
So, here is my $0.02 on the matter.
Just because the form of the product is different doesn't mean the rules about what theft is should differ. If it is a good, then it has a price.
1) Apply Kant's Universality principle- before you act, ask if it would it be good for society if you would want everyone else to act similarly in the same or an analagous situation. So, if YOUR work were available in electronic form for anyone to take without paying you, would you want them to be able to do so without legal recourse? Of course not-that is money out of your pocket. And if everyone downloaded the products, sales would decline precipitously, and the companies die off, unable to pay to produce the product.
Lets examine that further: You write a report on gizmos for your company, but go to lunch before printing it. While you're away, someone downloads your report and submits it as his own work, have you been harmed? The original is still on your hard drive.
Perhaps you did print it before lunch, and your boss likes it. He submits the work to a client, but the client has already recieved the info from the person who downloaded your work. Is the client going to pay?
You're already seeing some of this in the music industry. The RIAA has shown that while sales are down (according to a variety of indices) in general due to the economy, sales are down much more at retailers located around institutions that have high-speed internet access and a large number of online users (certain kinds of businesses, but especially universities).
The problem is that the form of property at issue is intangible. The property isn't the book, but the ideas the book contains. To reiterate, the book is not the property, it is the method of transmitting the property (namely, the ideas) to end users.
2) To the argument that you can't "try it before you buy it" so you'll download anyway just to see what the product is- BUNK.
Look at the copy in the store. Decide there if there is something in the book worth buying. Name another product you coud potentially get the FULL VALUE from before purchase and not be required to pay.
Or read a review of the product.
3) Whoever it was who bought the multiple copies of the Metallica albums (all destroyed or lost) and felt entitled to download a freebie-BULL.
If I bought a Volvo and it was destroyed, and I bought a similar one from the same manufacturer, and IT was destroyed, and so forth, at what point in this cycle am I allowed to just simply walk onto a Volvo lot and just drive off with a new car?
4) "They haven't lost anything."/"Its not worth it to me..."-GARBAGE.
It is obviously worth something to you- you have taken efforts to acquire it. The author has lost the ability to control his intellectual property and the sweat of his labors. Sure, there are still the same number of books on the shelf available for sale, but you have everything in that book available on your computer. His IDEAS are in your posession, and it is only your whim or twinge of conscience that will find him receiving recompense.
By downloading it, you have cost them a sale, even if its in the retailer's extreme markdown bin- "Everything in this bin 70% off!!!" You have cost your game store a little bit of its ability to cover its overhead. You have cost the company and industry a chance to show profitability to future investors.
If you downloaded something without paying for it and found something of use to you ONE TIME, you owe that product's creator something.
5) "Its too expensive" -SO WHAT.
I like prime rib and lobsters, but that doesn't entitle me to steal them when I only have $5 in my pocket. Even if you're a fan of Les Miserables (the book), stealing because you're hungry is excusable only insofar as you are stealing food for survival. Stealing exclusively from 5-star restaraunts is only going to get you negative responses from the jury- there's hunger, and then there's greed.
If the current price is too high, don't pay it. Eventually, if the product is a slow seller, it will wind up in the discount bin. Buy it then.
A product of any kind has its price set, at least in part, by considerations of raw materials breakeven points, shipping costs, storage costs, promotions costs, paying the talent (authors, artists, and design teams), layout costs, proofreaders (for press copy or actual product), markups along the supply chain, and shrinkage. If you don't know, shrinkage covers things like damaged product being returned, product returned for lack of sales, and theft or general loss.
If illegal downloaders actually bought the products they stole, that would enable the companies to make more accurate predictions as to all of the above listed costs and set a more accurate initial price because shrinkage would decline on 2 related fronts (lack of sales; theft).
Furthermore, as products sell more, they decline in price over time- simple supply & demand. When CD's were introduced, they cost $800+ for a single-disc player. Now you can buy a changer for under $250, and a portable for under $100.
The books are still too expensive? Then tell your game companies to use cheaper paper, print softcover only, use black ink and white paper (or cardboard for the boxes), and get rid of the interior and cover art. Then all of the game books can look alike and be extremely cheap, like they were printed at Kinko's, not unlike the old Metagames rulesbooks or the current Cheapass Games rulesbooks.
However, since there has been a nearly universal flow towards more attractive and better packaging in our hobby- better art, hardcovers for durability, etc., we have to pay for that improved quality.
Still not cheap enough? Have your game group pool your money and buy the books co-op style.
6) "It destroys the concept of competition"- UNTRUE.
The core of capitalism is competition. If you can come up with a better way to do something, you can compete better and make more money than your competition.
At no stage in the history of capitalism has competition included the right to use someone else's ideas without paying them-industrial espionage has always been a crime. Why?
Because the legalized theft of intellectual property is a very real deterrent to creativity. If I come up with the proverbial "better mousetrap" and it cost me 1Mill to do my research and initial production run, I had better have the right to be able to recoup my money before some guy can buy one of my mousetraps, retroengineer it, and be in competition with me within a week with startup costs of, essentially, ZERO. If not, I'll be out of business and broke while the second guy gets rich.
Now, if that same guy came up with substantially the same idea, he's free to compete, as long as he doesn't use any of the unique ideas or processes I used for my product.
The seller CANNOT just arbitrarily set a price. If he does, he will either underprice his product, and thus, not cover expenses and go out of business, or overprice his product which will not sell and could be undercut by a competitor who will set a lower price. The free market will drive the price to a level that people are willing to pay.
That is why in the transportation industry, there are Kias and there are Bentleys, there are trains and planes, but the only free transportation is your own feet.