On the other hand, it DOES involve property - Intellectual Property, which is a legally-defined form of property.
IP is property, I never denied that, but it isn't physical property. In the digital world you can duplicate a work of intellectual property and still leave the owner with a copy. With physical property, if you take it, the owner has one less copy. You know this. This means that the whole dynamic of taking = loss of a physical object isn't necessarily the implication anymore, but it is still an implication of the word "theft". The losses take a different form.
IMO, to most people the losses associated with the word "theft" pretty clearly imply the loss of a physical object, whereas the word "piracy" implies loss of sales, or loss of a right to IP. Using the wrong word obfuscates the issues.
Dance music event promoters who sell tape packs from their events but don't give a cent to the record labels who made the tracks are pirates, not thieves. (This doesn't make it any less infuriating for the producers who spent massive amounts of time and money to make said tracks, mind you.)
As you can see, this is a pet peeve of mine.
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