EI News and Notes

Economists Ink: A Brief Analysis of Policy and Litigation

The Cost of Recording PiracyStephen E. Siwek recently completed a study entitled “The True Cost of Sound Recording Piracy to the U. S. Economy.” The study, which was released by the Institute for Policy Innovation, discusses the impact of global music piracy on the U. S. economy. The study finds that recording piracy costs the U.S. economy $12.5 billion annually. Such piracy causes U. S. workers to lose over 71,000 jobs and $2.7 billion in earnings and reduces U. S. government tax revenues by $422 million.U. S. Steel Acquisition of StelcoThe Department of Justice Antitrust Division allowed U.S. Steel’s $1.1 billion acquisition of Stelco to proceed without a second request. Both firms made a wide variety of flat-rolled steel products in North America. Joseph W. McAnneny assisted attorneys from Reed Smith in preparing an antitrust defense of the acquisition. They described the relevant markets and showed that the acquisition would lead to substantial cost savings and have no anticompetitive effects. Henry B. McFarland also assisted in preparing the defense.Aceto Agricultural Chemicals Corp. vs. AMVAC Chemical Corp.Aceto sued AMVAC for monopolization and attempted monopolization involving pesticides containing phorate. Both firms produce such pesticides. Aceto sued when AMVAC acquired the patent for a phorate dispensing system and allegedly refused to license the system to Aceto. The U.S. District Court in Atlanta cited testimony by William C. Myslinski, who testified for AMVAC on market definition and other issues, in ruling against the plaintiff’s request for a preliminary injunction. Alison M. Holt, David D. Smith and Robert D. Stoner assisted with the case. AMVAC was represented by Alston and Bird