I support IP rights, as a general rule. However, they sure get abused. I'm kind of annoyed about this, even though I have nothing to do with it.
If you break my system, thanks for letting us know. It'd be great if we could pay you to help fix our system and make it more difficult to break in the future.
I'd not take them to court. I'd try to hire them. Hell, I'd give them reward money - even if they didn't want to be hired.