Up here (Canada) you need a Special Flight Operations Certificate to fly a drone in Controlled Airspace. One of the places I REALLY wanted to fly is in Class D Airspace (from surface to 4500 feet) so last spring I took the UAV ground school, went through the 32 page SFOC application, got $1M insurance, and got my SFOC for that location. I flew at that location ONCE but last weekend was the big event I wanted to record. In the early afternoon during the event I saw someone with a Phantom 2 getting ready to fly there so I went over and told him that it was controlled airspace and he told me it was okay because he wasn't going above 500 feet. I told him the controlled airspace started at the surface and he said I was wrong and proceeded to fly. He took off, flew FPV (which is not allowed in Canada), and flew higher than I ever would have that close to an airport! I was SO F'ING STEAMED that I was tempted to "drop a dime" on him but didn't. I didn't even take my Phantom out of the case. If there was some a@@hole violating the airspace, I didn't want anything to do with it. I found out later he was a commercial photographer and when I mentioned the Class D airspace again, he said "It doesn't matter now." which gave me the impression he didn't give a **** about regulations or safety. I am still STEAMED! Some of us jump through hoops to be safe and legal while others just ignore it all and do what they want. Would you have reported him?