Today, movie piracy is greatly affecting the economic growth of the film industry. Hence, combatting piracy is critical in averting losses for the film producers. This paper aimed to develop an anti-piracy model composed of a real time pirated video degradation system and a piracy activity estimation system, which in turn are based on Thermogram analysis and an ARDUINO programmed IR LEDs array. In the pirate estimating system, the Cubic SVM model is trained to classify the thermal images acquired from the theatre environment into normal and abnormal classes. An accuracy of about 99.9% is achieved in real time while testing for piracy actions. The proposed piracy discouraging system is programmed to real time degrade the quality of pirated video and to invisibly watermark the pirated video with the theatre name, date, and time information. The distortion created by our prototype system is evaluated by recording the video displayed on screen using different mobile cameras and the corresponding pirated video quality is compared objectively and subjectively. Based on the subject’s quality rating, it was found that the system has created enough degradation in the visual quality of pirated video to discourage piracy.