Time is relative too. If you and I are in the same room we appear to be in the same "time" the same way that the Earth appears to be flat, because the difference is too small to notice. But the "time" of you or I or any given particle is as distinct as its space. Of course, the ramifications are not quite that simple (because of time's arrow, etc), but it seems well within accepted theories.
At least, that is my take. I am a physics hobbyist, so it is entirely possible that I have completely misinterpreted the underlying theory. If I did, uh, well, sorry, and best of luck with all that photon stuff!
It should be a fine, like $100, that can be charged to the owner of the IP, a lot like automated speeding tickets. Enough to be a deterrent, but not enough to ruin anyone's life. Like speeding, we know that it is technically wrong, but sometimes we want to do it anyway and run the risk of getting caught. And like speeding, piracy will never be eliminated.
The other thing it would do is eliminate these type of shakedowns. Because there is the risk that one day it is a not so sensible judge, and people's lives are ruined because one time they downloaded a Steven Seagal movie or Paul Blart Mall Cop.
The cost of living is going up, and the chance of living is going down.