How do law firms know you are pirating?

So, it happened. I got a cease and decist for downloading Dune via BitTorrent over the PirateBay. I live in Germany. But this actually made me curious how exactly - on a network level - do law firms find out you are breaking copyright law? In Germany we have net neutrality. So the ISP can't really look into your traffic. With a torrent I can imagine that every seeder/leecher can see the IP addresses from where it gets its Pakets, right? Does that mean the law firm is torrenting as well? But what about illegal streaming sites that are not a torrent, how do they find out? There was a case where log files got confiscated. But beyond that Google didn't really gave me an answer. Everybody seems to be rather concerned whether they are safe or not, rather than the technical details on how they find out in the first place.

Thank you in advance.

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