Shouldn't it be that rights holders have to complain to the police who then perform a full investigation to prove that they're not talking a load of crap, THEN it gets passed to ISP's who can send out the nastygrams or otherwise make the users internet connection not worth having?
As it stands, it's a case of the rights holders being able to cause trouble for anyone they want as and when they want just by having a whinge at their ISP. way to go to give the music/film/whatever industry an easy way to harrass the general public rather than insisting they fix their broken distribution mechanisms and learn how to interact with modern society.
Seriously, of the ways to reduce piracy, here's a few:
a) Make content easily affordable and readily available WITHOUT any retarded restrictions on use or requirements for specialist software/hardware.
b) Simultaneous global releases. I dare say few people in another market area are going to wait the extra month for it to reach them, they'll just pirate it. This is especially true given most distribution technologies include regioning so you can't even play it back in another market area. Technologies that the pirated copies do not include.
c) Stop treating the customer as a criminal until proven otherwise, it only creates resentment that results in people thinking along the lines of "I'm not paying those scumbags! They don't deserve it!".
Also, when will the government and rights agencies learn that internet connections are NOT representative of a single user, they represent a whole household. This means that applying restrictions to a connection is not punishing the intended target alone, but also those who are innocent (until proven otherwise) who they live with. How is this acceptable? You don't send an entire family to prison because one of them stole something, so why send them all back to the dark ages before the internet became useful?
For the record, I don't support piracy. I buy stuff, perhaps stupidly since the pirates get better quality and less restrictions for free.