IMAX is not profitable today, as the focus now is on rolling out new theater installations -- which will pay dividends later on, as the screening fees start to rack up. And IMAX has a technological lock-in that guarantees that no third parties will butt in with unapproved content. The piracy problem can be countered in part with tools of the trade and by adoption of progressive technology.

Enterprise software traditionally comes with large price tags, but open-source specialists like Red Hat (NYSE: RHT) are proving that you can make money in other ways. Anybody can download Red Hat's core software for free -- and the kernel it’s based on is open-source, meaning all users have access to the core it runs on. In other words, software pirates have no reason whatsoever to make copies on the sly. Red Hat and its peers make their money by designing installation packages, providing business-class tech support, and offering other high-value services that tie into the software they're making. And sure, you can start your own Red Hat consulting outfit -- but nobody knows the software quite like Red Hat does.

What savvy investors should know
Although piracy is a salient threat to intellectual property of all kinds, investors can structure a portfolio that’s defensive against its effects -- or even one that profits from them.

Apple is fighting piracy with design. Red Hat does an end-around with high-quality support services. IMAX is applying unique technology to a familiar industry, locking customers into a long, profitable stream of film licenses.

The fact is, while piracy is relatively well-contained in developed countries with effective legal systems, it’s a huge drag on potential growth in emerging markets. But the effects of piracy don’t need to be a drag on any technology- or media-centered portfolio if investors keep a focus on companies that can treat piracy as just another market force or competitor. Look to companies that can win by out-competing piracy, as Apple has done with its new line of Shuffles, or firms like IMAX that are profiting from innovations meant to stimulate new experiences that copycats can’t emulate.

So when you see Apple effectively fighting piracy with design, don’t act so surprised -- this is the company that is famous for literally flying the Jolly Roger at its headquarters. It's not surprising that it would find a polite way to make fellow pirates walk the plank.

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