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As much as I oppose piracy, I also don't agree with inflating numbers to influence lawmakers or misrepresent the reality of what is going on.

http://www.myce.com/news/copyright-groups-inflate-piracy-numbers-30992/

When you look at the story you referenced, you'll find that they're talking about something else:

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Professors warn that piracy lost revenue figures are inflated

The "lost revenue" numbers may well be inflated -- they assume that each illegal download would otherwise have been purchased.

But the [i]extent[/i] of piracy has not been inflated.

Does piracy have an effect on media revenues? It certainly looks that way. Consider the top selling record albums of all time

http://en.wikipedia.org/wiki/List_of_best-selling_albums_worldwide

Big selling records basically disappear in the 2000s, and piracy grows.

We know that for media types where piracy is difficult (first run movies, in the theatre, for example), spending has increased most years, even during this terrible economy, Avatar broke all records.

Nothing that's piratable is breaking any records. .  .