SamIAm, the best policy at this point is scorched earth. Just stop doing them. You and a few others can do a joint youtube video explaining why you will no longer be putting out translations, and see if Joe would be willing to host it so it gets more exposure.
It sucks, but not much at this point is going to slow down his sales. It's up to companies to protect their own IP, and if they cant be bothered to do that after being informed of whats going on, then what can you do? I don't think Tobias is sitting back making millions here, but maybe thousands, making enough that he is going to keep doing this, and nothing is going to be "hands off" to him. The current status of many older Japanese game companies is that they are in a weakened position.
What is worse is that many of them don't have divisions with legal departments located in Europe anyway, so Tobias is in a fairly good position to just keep doing what he is doing. He clearly feels entitled to do what he does, and I think some small part of him thinks, or wants to believe he is doing it for the scene, to justify what he is doing.