Yes, but the French improved it by introducing the triangular blade. Legend has it that the man who proposed this solution was also guillotined during the French Revolution. A prime example of an unpatented invention killing the inventor.
You only quote one sentence from the report and already it's logically flawed, which makes me wonder what sort of language is used throughout this document. It says the sales were higher than "they would have been if not for the shutdown". But that's complete bullshit because no one knows what would happen if Megaupload wasn't busted. The only thing they can say is the sales were higher than they were BEFORE the shutdown, which makes a subtle, yet significant difference.
When I want to find the Pirate Bay I click on my bookmarks toolbar. I don't see how Google can affect that with their search rankings. This whole ordeal just seams like a complete waste of time and energy.
I find the language in those quotations exceptionally amusing. They're actually talking about “patent production”. This implies they really view patents as products, which can be produced and sold. In this way patents really do stimulate innovation -- they stimulate people to invent whole new ways to abuse the patent law and exploit it to get richer in an “extraordinary way”. Very creative indeed.
In my opinion the only fair way to calculate this is per capita, separately for file-sharers and non-file sharers. And if they did that, they would probably find that an average file-sharer spends anywhere from 2 to 4 times more on music (or culture in general) then a non-file-sharer.