How to fight "piracy" in a few easy steps:
1: make a GOOD product: GreenHeart Games did excactly that with GameDev Tycoon.
2: Make it AFFORDABLE: Again, $8 for a game that keeps you occuied for ages? that's a "steal"
3: Make it AVAILABLE: Game Dev Tycoon can be bought in most any country, for the same price everwhere.
4: TALK to your customers/product holders: Whether those using your product has a legal or a pirated version, doesn't matter. TALK with them. UNDERSTAND their point of view. Argue your point of view objectively, and do NOT go gung-ho on them. RIAA et.al. has done this for the past decade, and people like them less and less.
5: the more intrusive copy-protection, the more people will pirate your product. That's a simple fact. Because I (for one) know I'm more likely to continue to play with a cracked version of a game(even after I've bought a legal copy), rather than being interupted every 2 minutes by some copyprotection scheme. Nothing makes people lose interest in your game/app/whatever like intrusive copyright-protection systems.
All in all, though: Around where I come from, people "pirate" as a way of Try-before-you-buy, if I don't like the "pirated" game, I've not lost any money. If I DO like it, I'll buy it first chance I get (although, I still would play the cracked version if it turns out the copyright-protection keeps me from playing uninterupted.
And also, a good demo of a game, is woth its' weight gold. A good demo may persuade more people to buy the full version over pirating it.