File Storage And Piracy Issues?

Matt Tesch asks: "A couple of my friends and I thought it would be great to offer a free Web based file storage site built on Linux, MySQL and other open source software. Being able to offer it for free wouldn't be possible if we were confronted with licensing fees for our server software. The only problem is that our site, Globedesk.com quickly became home to a lot of software pirates. We now see one clear advantage of charging money for our service is that is would greatly reduce these abuses, as we would be able to verify names and addresses of our members. How can a business pass their savings on open source software on to the consumer and keep illegal abuse to a minimum?"