People who pirate in my experience typically do so because they would never have bought the thing otherwise. Pirates are enabled by technology to have things they wouldn’t otherwise get to have. There isn’t often any “lost sale.” Only free advertisement.

But… it is a confederation. Is it not? Why wouldn’t they? Even Wikipedia mentions confederation in the first paragraph of the EU entry:

The EU has often been described as a sui generis political entity combining the characteristics of both a federation and a confederation.