How do providers check that the traffic is BitTorrent? I've always wondered.
Otherwise, packet inspection on network devices should be able to discern the traffic.
I'm not well versed in this area anymore, but you can tell from the contents/patterns of packets that this source and that destination are using a given protocol.
I don't believe this type of traffic is encrypted - and the VPN provider has to decapsulate the traffic at some point :)
edit: I misread your comment. I was talking about the copyright holders not VPN providers.