1) They argued that moving digital good around should be subject to import tax/duties just like physical goods (steel/ lumber). The case they were making was for finished digital products.

2) The same argument can be used for the unfinished digital goods of the movies - the special effects. Currently large studios outsource the post production work to cheap labor markets.

Using the same justification as the MPAA uses for finished movies, labor activists in the domestic FX industry can have the government slap an import tariff on the special effects digital content as it comes into the country, wiping out the cost savings from outsourcing it in the first place.