I think you are getting mixed up between the digital britain debacle and what we are discussing above, which is (in the main so far) "civil law" - or rather an "implied threat" of civil law.
The above "model" is relatively simple...
1/ plant and seed selected torrents
2/ observe and record all IP addressses connected
3/ go to court, apply for an NPO which forces ISP to hand over account holders details
4/ send very aggressive letters to account holder, threatening eternal damnation if "demanded" sum of money not paid
5/ repeat endlessly...
A very clever and simple money making scheme dressed up as "infringement"
I am sure I do not need to point out that with such a simple "plan" many many corners have been cut evidentially, but hey ho people pay up anyway..
...well maybe not for much longer