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Copyright in the Digital Download Era

What follows here is just my thought process on copyright and piracy.  I'm not trying to judge, just bring to light the factors at play.

A recent discussion amongst a few of my followed on Twitter brought this question to mind: how did the piracy of copyrighted works evolve to how it is today?  Thanks to digital reproductions of digital products, there is rarely any difference between an original licensed work and a pirated copy.  When copyright law was envisioned these circumstances can't have been imagined.