The point that most people seem to miss is this: If the copyright holders Don't go after everyone who violates their copyright, no matter how small or relatively inconsequential they might be, The holder could lose the copyright. This is why you hear horror stories of big corporations like Disney going after a day-care center for using Disney characters without permission. It's not because Disney or whoever are heartless corporations going after the little guy just to be mean and greedy, it's because if they didn't, they could potentially lose their rights, possibly costing them their business and losing thousands of jobs and millions of dollars. It's not the company that's to blame, it's copyright laws as they stand now that's forcing them to pursue these copyrights violators.
I don't buy this. That might be the strictest possible reading of the law, but far from the most reasonable. I seriously doubt any loss of copyright would result from a failure to bring litigation against some bar or day care. I mean, there's a zillion Lord of the Rings/The Hobbit fansites out there making money of of advertising who use names, photos, quotes, scripts, video clips, etc. Are you suggesting that copyright, as it currently stands, requires the copyright holder to take each and every one of these site owners to court?
Copyright laws are broken in that they enable (not require) this blatant abuse, elevating copyright holders to such an absurd degree whilst offering little protection for the rest of society.