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It happens all the time and it's a great business model.

There have been a lot of successes with this. I'm shocked it doesn't happen more often.

There's no moral imperative saying it's "bad". In fact, quite the opposite. Just don't violate copyright.

I'm shocked it doesn't happen more often.

Ditto. For instance, someone should clone Nico Nico Douga:



Just don't violate copyright.

Or trademark, or patents, for the sake of completeness.

although software patents would be ok to violate.

It also happens the other way around, for example with Zopa and Prosper.

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