are there any experienced developers out there that have dealt with the issue?
been there, been hacked, lost the company.
the only way to keep your software secure is to not put all of it on the users device.
short of that, there's drm technologies, hardware, software, or internet based. and any drm also requires anti-hack technology to protect the drm code.
when i first faced the issue, i developed an in-house hardware (key disk) based copy protection scheme, but with no anti-hack protection. that was sufficient for many years. the free online demo wasn't the whole game, and no registered user ever hacked the games. when digital distribution became the rave, i jumped on board the bandwagon like an idiot, and went to software (registration password based on hardware ID) drm, with no anti-hack protection. now the demo had the whole game, all you had to do was enter a password to mach your hardware id - or hack around the password checking code. Soon after the release of the software DRM demo, sales suddenly dropped to near zero. i discovered the game had been hacked, then posted on a website by a guy in nigeria with an isp in china, on a server in russia, or some such thing. lost the company, had to get a real job.
The ironic thing is i still get fan mail from folks who only played the hacked version - thinking it was a legit version.
The title that got hacked was Caveman v1.3.
Whether folks will buy legit vs download hacked depends on how rich they feel, how easy it is to find and download, and their morals. Unfortunately, the average impoverished college student will download rather than paying if possible (hey - that means more beer money- right?), or doing without due to moral principals.