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Couple things:
1. A third party has no standing to complain and it would be incredibly irresponsible of any service provider to yank service over an uninvolved party's complaint.
2. The DMCA is available and easily used for an aggrieved party. I've shut down a MUD myself, in a foreign country, by using it. The ISP simply required a letter from a lawyer laying out the DMCA violations that the MUD in question was committing (operating without a valid license, since we'd already yanked the license for non-compliance). As far as I know, the DIKU guys haven't even bothered using this cheap, easy method, really making one wonder if they care even a smidgen.
--matt
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