Piracy is something bad that ruins the quality of the games because game makers earn then less money, and so will then have less money to produce the next games, or even sometimes they just get ruined and won't produce another game at all.
When i was jounger i also got lot's of games from school, also for free most of the time. It started with my C64 with tapes full of "turbo saved" games, then continued with Amiga disks. Now i'm on PC, i also have a fiew pirated games, but all in all i have arround 90% bought PC games. I have also an XBOX 360 and arround 50 games (not a single pirated one !).
I think protection against piracy is NEEDED ! otherwise you could just hand out your games for free and close your company affter that. They need to find some good protection that has no down sides for the actual buyers, what would be helpfull for both, the company and even the gamers because it would help a lot to improve games quality.