IANAL, however I have been led to believe that those reciprocity agreements usually include some statement along the lines that said infraction needs to be prosecutable locally. Countries usually don't extradite their citizens for things that aren't considered a crime in their jurisdiction..
There are multiple treaties at play here, at the very least, like the Berne Convention and subsequent treaties about copyrights, and the Mutual Legal Assistance Treaty between Canada and Germany: https://www.treaty-accord.gc.ca/text-texte.aspx?id=104860
There are criminal copyright infringement laws in both countries...
But the lawyers here cannot actually force the German state prosecute anyway, and it seems they did not file a criminal complaint anyway, and even if they did the prosecutors' office would most likely deny prosecution against EasyDNS since they are only a service provider and not a direct party to the alleged infringement. The prosecutors' office would probably even deny a prosecution against the actual perpetrator because it's just about a single image and thus a minor infraction.
So right now it's just a civil matter.
