I have a friend who pirated basically EVERY SINGLE GAME HE OWNS. Kind of pisses me off (especially when he wants to play a game with me that we both have but we can't because I have a legit copy and he has some stuffty torrent of it) but there's no need to call the cops his parents.
I have a friend like this.
He would (And I assume still does) torrent almost all things he wants, including movies, games and music.
And if you'd talk to him about a movie or a game and recommend it to him, he'd say that he would probably look for it on torrent.
Mentioned he would torrent Blockland when I told him about it.
He insisted he could when I told him he really wouldn't be able to, but since he never played it, I'll assume he realised that he would only continue to fail at trying to pirate it.
Anyway, your friend pirates a couple of movies.
His reasoning for it is very stupid and morally it's wrong, but I don't think it's worth it to rat him out.
His parents aren't going to do much about it, other than tell him not to, the Police aren't likely to get involved unless they simply tell him not too as a friendly warning as well...
You'd basically just upset your friend.
If he absolutely torrents everything and you have a real problem with that, then I personally wouldn't say it's bad to tell his parents or such.
Advise him not too, but if he continues, tell his parents or get yours to tell his.
You know how parents are. They can very easily blow things out of proportion. They'll probably freak out about how illegal it is more than the police would and they would probably do more to ensure your friend stops pirating.