(I'm posting this here initially for discussion purposes.)
My thought was a facility, activated by a tickbox in the Submission Wizard. At the end of each page of a story, it would insert a message along the following lines:
'This story is hosted at StoriesOnline.Net. If you are reading the story from another source and you see this message, the story is likely to have been pirated. Please report it.'
Pirates could download the story and delete the text, but having seen "Title" by "Author" at the top of some of the stories stolen by Veronica West, the average pirate may be too lazy.
Who should the theft be reported to? Amazon only seems to respond to the real authors, but some SOL authors don't want to be contacted.
AJ