First up, cheers to Jay fer bringing this to the fore.
Next, ye may want to read a related article Chris wrote some time back… (Beware Movie Pirates)

Now; as you know, people who make, sell or buy products that are clearly not of kosher origin are unpatriotic heathens with no respect for property and must be pursued and punished with the full force of the law. Or, to put it another way, knock-off goods and illegal downloads cost untold millions to the economies of various countries.
There’s just one little detail though: that word, “untold”. Up until now, the US government has been able to provide suspiciously accurate figures on just how much such piracy is costing. However, a new report by the internal watchdog (Government Accountability Office or GAO) has finally skewered these skewed ‘reports’ once and for all. And it’s not finished yet, either.
Here’s just one example: The Motion Picture Association of America (MPAA) set up their own little research into how damaging illegal movie downloads were to the industry. Actual figures aside, the GAO have now revealed that the MPAA report overstated the piracy by three times the real quantity.
I’m not going to paraphrase the whole thing – especially since there’s such a good article on it over at ars technica.