Tony,
after carefully reviewing all the great advice from you guys, I've decided to essentially do what David suggested:
1. send the owner a bill for "international advertising licensing" of the images. It will be substantial.
2. register all of the images from the National with the Library of Congress.
3. provide my lawyer with a copy of my original e-mail telling the owner that he had no right to use the images; a copy of my bill and cover letter; a copy of the owner's website with the images; a copy of 3 other websites where the owners are breeding to the dog and they've used the same photos.
If the owner doesn't pay the bill or at least negotiate a lower price, I'll take him to small claims court seeking a settlement of 3 times the licensing bill. I will also contact his ISP and notify them that he is using pirated images on his website. They are required to remove his site according to federal law.
That's about all I can do. And, in this case, I hope I get his attention. I'll let you know how it plays out.
Jim