Yeah companies buy that software (flash, photoshop etc.) because it's not a good idea to have cracked or unlicensed software on the office PCs. Could easily spell doom for the company.

But generally individuals dont or cant as its way too pricy, so they get the cracked versions from wherever...either way, 9 out of 10 people who got the cracked version wouldn't have bought the software anyway.

So it shouldn't count as lost sales due to piracy if they wouldn't never pay the high price in the first place.

Ps. I'm not trying to justiy piracy, just instilling a logical perception as to why a lot of it happens.