This is a must read !

"As software developers, piracy is something that affects us all. If you are a software developer who works for a big company, you likely do not see it directly. But you still have an interest in who is using your company's software. If you are in a small company or are a developer who sells software, piracy hits a lot closer to home.

However, the conventional wisdom, which often equates to the "knee jerk" reaction, is not the proper one."

http://www.codeproject.com/gen/design/UnconventialWisdom.asp