

To be clear, I’m not saying it’s a good argument. OP just grossly mischaracterized it.
The main issue with this is that it would either A. Be massively open to abuse in the same way that YouTube is now, but would come with greater penalties in that you can lose Internet access. Or B. Force your ISP to do a copyright analysis every time they receive a report.
Every illegally downloaded book is a lost sale
This is straight out of 2007. What an awful position to take.
And that’s fucking wild about someone fighting you over your own music. The DMCA is a fucking joke.
There’s no such thing as entrapment in the world of copyright, unfortunately.
That said, something kinda similar did happen in the Viacom v. YouTube case. It’s been over a decade since I read it so forgive me, but I think YouTube discovered that Viacom themselves had been uploading bits of The Simpsons, and I believe sometimes processing them to look like amateur clips because they believed that the exposure helped them in the long run.