Hmmm, a very interesting area for exploring a libertarian point of view.

First, I'm essentially of the mindset that it is best to operate as an individual where you take the responsibility for your interests/property and treat both in a manner that allows you the greatest amount of either protection of or freedom with said interests/property. I don't want my nude (and fully clothed) images floating around the interwebs. I wouldn't permit people to take these photos, I wouldn't share my own copies (not that I spend much time taking nude photos of myself, but I digress). Now, for stolen images, or photos taken on the sly, well, different situation.

I like the idea of eliminating the governmental middle-man, as it were, from the "punishing" aspect of making a victim whole. The middle man adds unnecessary complexity and conflicting (even disinterested) parties into the mix, making the whole process convoluted and imprecise.

Now, the idea of insurance that you bring up is a little confusing for me. Is this a specific type of personal insurance people obtain? Is this a sort of insurance clause that tags onto existing property insurance policies? What is the mechanism of enforcement?

All interesting areas of exploration. Enjoyed the thought experiment, thanx.