Imagine this scenario. The very first matter replicator is created, and that replicator can duplicate anything as long as it has access to at least one "original" of that object, or a copy of the original. The duplicated objects are the same quality and functionality of the original, but the original took a lot of extra work to create because replicators can't duplicate that which doesn't already exist.
Is it fair for people to use these replicators to create a copy of their neighbors BMW if their neighbor lets them? What about if their neighbor also has a copy, or a copy of a copy, etc.
How does BMW get compensated? They invest a great deal of money into the production of these BMWs, and it would be impossible for them to have any profit if they could only sell one, or say a few thousand, which would then be replicated throughout the world for basically free by those people with replicators.
Some might argue that BMW should simply suck it up, design the car and sell as many as they can, allowing people to copy those cars freely. In that case, BMW quickly goes broke because the profits made from selling only a few thousand BMWs simply can't offset the design, advertising, testing, and even production - although production is the most trivial part of the process thanks to the replicators.
In the end, BMW would be forced to stop selling cars because they are so easily replicated nobody but the few people without replicators (or a group of people, who will each get a copy of the single original car) will buy a car from BMW.
Wouldn't logic dictate that in order for BMW to continue to exist, protection must be built into the replicators so that while non-protecting objects can be replicated freely, objects which have this "protection" must be bought it their original form only.
The same is true for music. Yes, record labels are typically evil and vastly overcharge for their product, BUT that does NOT justify stealing that product. Because people don't understand simple economics, these companies are forced to push "protection" technology. If it's demanded, somebody (usually the smart sombodies) will supply it.
In other words, it was only a matter of time before this technology becomes widespread... Microsoft, as usually, sees a nitch and is trying to fill it.
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