IFrom a production and economics viewpoint, if company A designs and produces one mod, the price will be ridiculous and company A would be fair to command a high $$ for the one mod. If the company then produces 5000 more mods off the original design, company A should be sensible enough to find the equilibrium price for market demand. Raw materials will for the production of 5000 units would be a nominal factor once the original design and product is produced. If company A has 5000 consumers willing to pay X amount of money, then that's what the market will dictate. Introducing clones into the market should not affect the 5000 consumers of the original mod. All that's added are the consumers buying the clones who would not have been part of company A's consumer base.
I feel there's a bunch of questions here that come into play.
I think one question would have to do with cost of production. If Company A's cost entails hiring / paying for the best and brightest, and building the proprietary design in a quality factory, and providing additional benefits to all persons in the factory, that is going to partially determine price point, yes? Essentially, their overhead will be greater than company B who is producing the same product as company B. Likewise, let's say company A is not extravagant in its production quality, but for its geographical location is 'normal.' And that company B for its geographical location is just a little bit below 'normal.' But when comparing A to B, there is dramatic difference such that when doing comparative analysis, one sees that workers for A get about $10 an hour, but their counterparts in B get $1 an hour. Thus the overhead for B is 10x lower and is perhaps a huge reason why B's product need not be sold anywhere near price of A's. Wouldn't all this be important considerations from economic viewpoint when looking at 'world market' as if it is level playing field for all consumers?
I also wonder with what you are bringing up what, if any, problems would there be for blatant, but so called non-deceptive counterfeiting. As in Company A is selling Coke and I own company B that also sells Coke, in cans that look exactly like company A's. Company A sells their product for say 50 cents a can, and I choose to sell it for 15 cents a can. As I'm not doing anything inherently wrong, would this just be a matter of me and market forces letting Company A know that it would be in their better interests to come down to 15 cents a can or thereabout?
Likewise, let's say I am owner of company A who sells / distributes movies that are packaged in a way to not only justify price I choose to sell at, but to let consumers know I am selling licensed copies of the film. Each packaged copy of the film is $10. Replications thru official means cost me about $1. Yet, replication (and almost exact same process of replicating) thru unofficial means costs pennies (let's say 5 cents). If consumers don't really care about the packaging, and only care about seeing the movie, then isn't it in best interest of consumer to get copies that are say being sold for 25 cents? Which in turn would tell Company A, they are overpricing things and ought to come all the way down to 25 cents, or thereabouts, to meet demand?
In earlier post I brought up 3D printers. Those continue to get better with what they are able to replicate. It would seem from consumer viewpoint, if we can obtain replicators that can build exact same 1:1 versions of any products, this would be in our ultimate best interest as once the original is designed, it need not be built by any company and can just be a choice to replicate and build by consumers, as desired.
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