Click on their Blogger Content policy, then there is a link to this:
http://www.google.com/blogger_dmca.htmlIt tells you how to use their form to report infringement. You can fax or mail it to them.
Good. In most cases these days you need to send a DMCA claim to the site owner.
Usually when I see my images stolen (especially with watermark) I don't even bother trying to contact the user. It's a waste of time. I go straight to the site owner or the web hosting company. There will still be room for the user to respond and clarify the situation but mostly the users don't care if the copyright owners contact them.
Once the web host or site owner contacts them threatening to close their account they get nervous and do respond.