Profiting from Being Pirated by ‘Pirating’ the Pirates

SUMMARY Pirates are not only copiers, they can also be innovators. They possess skills and a creative capital that allow them to explore new directions. Their innovations can be freely and profitably re‐appropriated by the high‐end designers of the pirated firms. Creative pirates are engaged in a kind of tacit reciprocity, where they appropriate illegally creations of high end designers and launch modified or new versions that can in return inspire in a profitable way, the designers of the original fashion houses. Moreover, pirates can create a pro‐competitive environment that stimulates the innovative abilities of the pirated firm at unexpected levels without piracy.