Mr. Carner has complained of a lack of positive feedback. We are all telling him what's wrong with his business model, but we're not telling him how to improve it and we're not talking about what's right with his model.
My feeling is that we're not talking about what's right with the model because there's really not much that's right about it. Legal? Yes. Moral? That's another forum, this one's about extortion letters and the law. Ethical? Most of us don't think so, but our ethics as a community don't appear to be as flexible or scalable as those of the "royalty-recovery" social circles.
So here you have, free of cost and worth every penny, my personal advice as to how to improve your business model:
1) STOP IT. Really. Stop and think about what you're REALLY doing.
2) Don't be evil.
3) Give people a break and stop filling your pockets with their mistakes. You know, most will apologize in tears and love you forever for letting them slide on what was essentially a peccadillo. If they do it again, I say you can totally release the hounds and I even would hold their leashes for you.
4) Don't come here to pick our brains for free under the pretense of letting cooler heads prevail. You started it with your trolls. That's why you don't have so many friends here, although some of us are trying hard to at least be fair.
5) Don't pretend to be a professional enterprise interested in protecting Mr. Tylor's intellectual property without doing something proactive and energetic about the thousands of wallpaper sites that are still seeding copyright infringements for innocents. That's as fatuous as the claim that you can have people sent to jail for something you can't prove.
Going after the end user will NEVER stop the problem. It's simple, just look at a model of how disease spreads in any given population. The approach is to contain the spread first to protect the rest of the population. You have made some vague statements about your attempts but they strain credulity because I can tell you of several readily-available, American-born-and-bred ISPs that HAVE to listen to your takedown request by law. Have you given up on that because you're tired of writing letters that don't bring back checks?
If I hired you as my intellectual property defender for the last two years, I would be all over you for your complete and absolute failure to address the problem. Did the problem grow too big for you? Have you tried seeking relief with the respective authorities? Their job is to help you track down those culpable for this MASSIVE and totally EGREGIOUS abuse of Mr. Tylor's intellectual property. Is Mr. Tylor so easygoing he will not hold you accountable for this total professional failure?
Those people who are seeding VKT images have names addresses and phone numbers. They have Facebook pages with detailed profiles. You can even learn what kind of music they like on the public internet. You're not able to track these people down? What kind of intellectual property vigilante outfit are you anyway?
If I ever need my intellectual property protected, I know where not to go and I will be telling everyone in my industry all about it. You're going to have to make some very drastic changes to your model before you qualify for my intellectual property provider whitelist.