Is it right to sue? Yes, it's theft of intellectual property.

Is it "outing" the individual? That's irrelevant, as one can't (or shouldn't) assume the guy (or gal) doing the downloading is gay, he's a thief and was caught.

Just because you can't afford something doesn't entitle you to get it free. That's the same as breaking in and stealing cars, home theater systems, bicycles, money from ATMs, a Rolex watch or whatever else you fancy "needing" or "wanting".

Just because it's "cyber" doesn't make it OK. Someone getting a hold of your ID and credit card number via the internet, and then using it, is exactly the same thing. It's theft. I'm sure you would be upset, quite angry and feel violated, and would want to see the guy caught by the police and punished. Corbin Fisher feels the same way about the theft (unauthorized distribution) of their products.