On this side of the pond, a recent change in how the courts work has enabled small claims to proceed in the High Court without the risk of losing your house to pay the legal fees of the other side if the case goes against the claimant. It's called the Intellectual Property and Enterprise Court Small Claims Track.
On the 17th of April my first case was heard. I have written up the events leading to and including court and judgment:-
http://simonbrownimages.com/casejudgment.html
Judgment made it very clear that using a watermarked image was flagrant and attracted higher damages.