Linden Lab is correct (as is Adam) that there is no technical solution.
Many of the people complaining to Linden Lab for a technical decision need to look at history, and find a single case in history that DRM (digital rights management) has not been hacked and worked.
Those people then need to work together to use their legal means against those breaking law - whether that be a single person, a company, or and internet service provider; at least, that is what the lawyers with the most virtual worlds expertise have been saying:
Transcript from Frank Taney's Q&A in Hawthorne - SLOG
Regards,
-Flip