Well, anyone is free to report it, but an ISP could be sued for cutting off service in breach of contract in that case. It's also incredibly irresponsible. Further, if you, as an ISP, decide that you're going to substantially patrol for IP violations, you may lose common carrier status (There.com is dealing with this, for instance) and then actually be liable for the content sitting on your network. That is -not- what an ISP wants.
--matt
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