Example: Frank is a member of Scale Speed Garage, and unlike the overwhelming majority of our members, Frank decides the rules don't apply to him. Frank decides to start selling our files for $10 each and he finds 20 people who want to buy a file. Frank makes $200 from selling our files. He is happy to have a few extra bills in his wallet and doesn't yet know about the storm of hellfire that is about to rain down upon him.
One of the people Frank sells to is Joe. Joe is not a member of Scale Speed Garage, but he now holds our intellectual property and decides he too wants to make some money. So now Joe starts selling this file also for $10, and he sells to an additional 20 people and also makes $200. Just like Frank, Joe is pleased with his extra little side gig and also doesn't know that it's about to be a very expensive mistake.
Now, let's say one of the people who buys from Joe is Harry, and Harry happens to find the watermark on the file he purchased. Harry follows the link to this page and realizes he has unknowingly purchased a stolen file. Harry fills out the form at the bottom of this page, and because of this, we discover the unauthorized sharing by Joe and trace it back to Frank.
Because Joe committed 20 violations of the Terms and Conditions, he is sued for $10,000. Because Frank committed 20 violations, one of which led to 20 more violations, Frank is sued for $20,000. We are awarded a total of $30,000 in damages (of which, the lawyer of course immediately takes their 1/3rd), and for his part in reporting the piracy, Harry receives 30% of all money received, in this case $9000.