How do you figure? I think 10x is an entirely reasonable penalty for stealing* someone's work instead of paying for it lawfully. The MPAA demanded $30,000 for a $0.99 song, which I would say is completely unreasonable. But 10x seems pretty inline with a non-excessive penalty.
So probably closer to $1000, if not more.
Also, who said anything about morality? This is law, not philosophy. We're firmly planted on the 'is' side of 'is/ought', at this point.
1) There was no legal expense 2) He catches at least 50% of the violators
In that case, he would at least make as much as if there were no violators. However, he has legal costs, and probably only catches a fraction of the violators.
So the equation should be something close to:
(Price charged for violation - legal fees) * % chance of being caught = Original price of image
How do people develop this sort of attitude? It's completely illogical. Developers don't understand business?