Senator Hagan's justification for internet censorship debunked

North Carolina Senator Kay Hagan on why she is co-sponsor of the deficient Protecting IP Act, via Mark Binker: 

"We have about $58 billion a year of intellectual property stolen."

So say the motion picture lobbyists, but is that accurate?

Not really

From the CATO Institute, via Ed Cone:

Only $58 billion! We’re making progress! So where does that figure come from? The source here is a paper released by the Institute for Policy Innovation, and authored by one Stephen Siwek, an MBA and principal of a consulting firm called Economists Incorporated that produces economic analysis for hire on behalf of (among others) businesses seeking to influence policy makers. That does not, in itself, invalidate the research, but we should at least begin with the recognition that we are not dealing here with impartial academic studies produced by a university or government research agency.

What does invalidate the “research” is the inappropriate use of “multiplier” effects to double—and triple—count loss estimates that were dubious to begin with. As the GAO report notes in its typically understated fashion:

"Most of the experts we interviewed were reluctant to use economic multipliers to calculate losses from counterfeiting because this methodology was developed to look at a one-time change in output and employment."