Making penalties a fraction of profits is questionable since companies can do strange things to show "no profit." Making it a fraction of revenue punishes the wrong people (usually).
Even more fun, now there's a $6B lawsuit in the UK against Sony because apparently the playstation's digital store commission of 30% is artificially causing prices to be too high and "hurting customers." It's like people don't even know how pricing works - can you imagine if they find out what a typical retail markup is? Oh wait, for some reason even if they know that, because "it's digital" they somehow think it's different.
For those of you that know my post history, you will know that I'm vehemently against rent seeking - but charging a commission that the market can (and is willing to) bear is not it. Especially for luxury goods like video games - just don't buy them, and either prices will drop or you'll find something else to do.
For this one I'll agree, it's ridiculous. Of *course* console manufacturers put a surcharge on games. For a time (perhaps even now?) they sold their consoles at a loss, and made their money off licensing developers to release on their consoles.
This is why buying too far into a particular console is a risky proposition. Not to "PC master race" here, because Microsoft tried the same shit with Games For Windows Live, and still continues with their Windows As An App Store BS. But I've got little sympathy for someone getting mad after they *chose* the walled garden. Yeah, the buy-in looked cheaper at first, and the exclusives were so tantalizing. They weren't doing that for free!
It’s the literally ancient debate about “eye for an eye” versus arbitrary punitive damages.
I’d personally have a system with mandatory compensation (you wreck my car, you guve me a replacement of equal value) instead of maybe getting a replacement if you happen to win a suit.
Partly I think it’s because we lost the personal aspect and can offset our risk with insurance. I’d expect people to be way more careful if they were on the hook for a larger part of risk than a relatively small insurance premium and deductible.
This also applies to giant corps, as they carry liability insurance.
Eye-for-an-eye is insane even without the reality of court fees and access to justice issues. An accident is one thing. Deliberately hurting someone is another.
Let's take it literally: Is it just for me to take the eye from a hated political figure, if I'm willing to pay with my own eye?
In the same way is it just for a rich person to smash my window, then pay precisely the cost of replacing it?
Perhaps a perfect justice system would factor in less tangible damages. A VIP's eye is worth far more than mine because it might impact their high-paying career. Having my window casually smashed for fun causes me emotional distress beyond the cost of fixing it.
That's difficult to nail down, so we barely try. Here in reality we punish deliberate harm punitively.
We also don't have proper access to justice, so a corporation has to REALLY fuck things up to get hit with punitive damages. That often takes the form of a class action lawsuit (pooling a large number of victims in order to stand a chance against a corporations legal team). The lawyers are often paid on spec, and thus take a sizeable chunk of the potential payout. Which is rough for the victims, but the important thing is to HARM the offender so they stop HARMING PEOPLE for MONEY.