It seems to infuriate me and make me more likely to ask to be payed in cash when doing business with companies that seem to be in the gray area of the law.

But in no way will I cave to this mafia style behavior.

Do I now risk going to jail if any of the people o worked with use my software for something illegal?

>It seems to [...] make me more likely to ask to be payed in cash when doing business with companies that seem to be in the gray area of the law.

Money paid in cash still needs to show up in the books of the company and your tax statement. If it doesn't, you just handed them another opportunity to make you hang - tax fraud is nothing to trifle with.

It will be on the books but maybe as something else.

I don't mind paying tax but I'd rather not get arrested for something a person I do business with did.

This is the chilling effect this kind of behavior by the state has.

It make people less willing to share real information with the government since it could potentially get them arrested just to make an example of them.

It's all about trust and this kind of behavior makes me not trust the government or the law.

If it's on the books then it's on the books as "y did work for x" which is about as much as they need.

This is the most logical explanation that I know of, also considering what happened to PopcornTime.

Reference please, I missed the PopcornTime drama.

[Repository unavailable due to DMCA takedown.] https://github.com/popcorn-official/popcorn-app

it's like arresting the knife maker for a crime committed by a murderer.

Only somewhat. I don't agree with the sentence here, but a full analogy would be a knife-maker who made a custom knife to order for a person who they knew intended to market it as a murder weapon.

US are selling a shitload of automatic weapons and nobody bats an eye about it..