Sometimes its wiser to keep your frineds close BUT your enemies closer.
Otherwise, personal integrity wins out in the long run. And as long as you can sleep at night, all is well. If that measn reporting the bully to the appropriate authority, or standing up to them, or standing up for someone else you see abused, then it works out.
If the Bulying is mindless and cruel and is affecting your self esteem, then under no circumstances let it go - attsck it head on and put the mongrel in their place.
The best thing you can do if you are being physically bullied is to learn to fight and defend yourself in front of a crowd. If it is intellectual bullying, then standing up measn having a witty say in front of a crowd and humiliating the bully, then reporting it to deter them from finding you alone one day and having their way.
Ultimately, bullying should never be tolerated and even if it takes years to teach them a lesson (court or otherwise) keep chipping away at it and never roll over and die, but always keep your sanity.
Do some reading on how Eastern cultures deal with it too, on a spiritual level - it could give you strength.