If you are an idealist who believes that strict enforcement of existing laws is of ultimate importance, then report the piracy. However, consider the following:
A) If the source of the report gets out, you'll be shunned by your co-workers at bestand fired (and possibly blacklisted) at worst.
B) Unless you hold yourself to the same strict enforcement of laws, you would be a hypocrite to report anyone else. Do you ever speed? Download any graphics or sound files from the Internet? Makepersonal use of your company's Internet, telephone, or other equipment? "Forget" to report some income on your tax forms? Any time you venture into so much as a "gray" area of the law, you could be considered a criminal and thus be reported to lawenforcement.
Jaymen