but you can't blame Penguin for it
It's not their fault. My friend downloaded them. All users can choose what they want to share and what not. Since you need a password to view the movies (which you only get when you buy the trick) the original spreader of the files is probably someone who bought the tricks. Once a movie is placed on sharing programs, its spreads like crazy.
They consider to encode their movies instead, with licence software
I think they really should do that. Adding licences to the movies would prevent people who download the movies to view them.
I also got a short response from Penguin Magic:
Dear Alan,
Thank you very much for bringing this to our attention. It is much
appreciated.
Best,
Kevin
Penguin Magic
So maybe they will do something about it by finding a better protection for their movies. People who know how a trick works will not buy it, so they also loose profit this way.