A good friend of mine wrote a brilliant post about the issue of piracy: Dear Broke Reader: Your Sense of Entitlement Is Killing Me. As writers, it threatens all of us, from the best-selling author to the no-name author like me. It affects ALL of us. Even before my books were published, there were pirated copies available on the Internet. I suppose they took arcs apart and scanned them, who knows, but it's across the board obviously. Complaining to Google could be a full-time job in itself.
I think that Sarah's blog is so well written that I can't add anything to her central point. But what I do want to point out is that not only are authors losing $$$, they are also losing clout. Your sales are not just about the dollars. It's also about generating clout in the marketplace. It's about getting that contract renewed for additional books. It's about getting speaking gigs to further your presence in the book buying market. It's about publishers being interested in you and wanting to further your career because it makes them money for them. In short, piracy is the gift that keeps on taking. Not only do you lose sales, but you also lose market share in an extremely competitive sphere.
I honestly do not think that the publishers are quite aware of how pervasive this practice is. Seriously? The Austen pastiche I published is available for free on some torrenting sites! It affects everyone who has ever put a finger to a keyboard.
I have no solution to this. I just know that I have been impacted by it and so has every writer I know. Once books became digital objects, then the writing cows were out of that frigging barn and scampering across the fields. You might as well close THAT barn door.