Do a Kumite Style Death match on PPV and have Frank Dux host it!!
I would just shrug it off, unless of course he was doing it in front of your dojang. At that point, you contact the police for people loitering. You can't fault the guy really for trying to maintain his business is these trying financial times, so live and let live.
You bring the pay per view guys, I'll bring the Frank Dux!