Feds raise questions about big media's piracy claims

After spending a year studying how piracy and illegal counterfeiting affects the United States, the Government Accountability Office says it still doesn't know for sure.

"Some experts we interviewed and literature we reviewed identified potential positive economic effects of counterfeiting and piracy."--GAO report

Congress tasked the GAO in April 2009 with reviewing the efforts to quantify the size and scope of piracy, including the impacts of Web piracy to the film and music industries. In a 32-page report issued Monday, the GAO said most of the published information, anecdotal evidence, and records show that piracy is a drag on the U.S. economy, tax revenue, and in some cases potentially threatens national security and public health. But the problem is, according to the GAO, the data used to quantify piracy isn't reliable.

"Three widely cited U.S. government estimates of economic losses resulting from counterfeiting cannot be substantiated due to the absence of underlying studies," the GAO said. "Each method (of measuring) has limitations, and most experts observed that it is difficult, if not impossible, to quantify the economy-wide impacts."

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