Chad Hower is a smart guy and I came across his post on protecting the software you write from pirates right at a time that we were revisting the question ourselves.

On the whole I agree with Chad, while he comes off as against anti-piracy in the beginning of the post, in the end you realize that he is just advocating for a measured response.  I couldn’t agree more.

This is very much the whole, “In order to save the village we had to destroy it lesson” where you get very diminishing returns if you go too far off the deep end in trying to make your code pirate proof.