It's entirely different to buying a stolen bike. There's no deprivation caused by piracy. It is like making a copy/knock-off version of your bike, and selling them.
For what it is worth, I had my own business (Photography), and was constantly subjected to having work illegally used and copied. I can also tell you what the polices opinion on this being "fraud" is. The discussion usually goes, "thanks for telling us, but it's a civil matter." Which is why you see so many piracy cases brought to courts by companies, rather than by the CPS.
It is not in the public interest, or worth the Polices time, to investigate and prosecute these offences on small levels. The guy making £30k+ per year selling them, may be a worthy target, the guy buying it is worthless to them.
Grouping "piracy" into "criminal activity", is similar to saying condoning changing to clipless pedals, on a road bike (with no pedal reflectors (contravening construction and use act)) is criminal.
A lot of things are copyright infringement, in fact, I bet most people on here are committing copyright infringement while saying they don't.
- Buying a CD and copying it into your iTunes
- Making a back up of your OWN PC that has an iTunes library on it
- Making a copy of music on your iPod via iTunes
All of these are illegal to do, yet I'm sure if you own an iPod, you put music on it from iTunes. Or have backed up a music collection in the past?
Edit:
I am in no way condoning piracy, but piracy, and copyright infringement issues are not black & white, or straight forward.