Because that method rejects everything about prices. People consume more of something the lower the price is, even more so when it is free: consider the meme about all the games that have never been played in people’s Steam libraries because they buy them in bundles or on sale days. There are ~zero branches of history where they sell as many units at retail as are pirated.
A better-but-still-generous method would be to do a projection of the increased sales in the future under the lower price curve, and then claim all of that as damages, reasoning that all of this excess supply deprived the company of the opportunity to get those sales in the future.
Because that method rejects everything about prices. People consume more of something the lower the price is, even more so when it is free: consider the meme about all the games that have never been played in people’s Steam libraries because they buy them in bundles or on sale days. There are ~zero branches of history where they sell as many units at retail as are pirated.
A better-but-still-generous method would be to do a projection of the increased sales in the future under the lower price curve, and then claim all of that as damages, reasoning that all of this excess supply deprived the company of the opportunity to get those sales in the future.