Seems kind of funny for TPB to be threatening a copyright infringement lawsuit. But then again, it's also funny for a pro-copyright organization to be blatantly ripping them off...
A statement like: "We are outraged by this behavior. People must understand what is right and wrong. Stealing material like this on the internet is a threat to economies worldwide" should make it clear that they are joking.
They even have a Kopimi-symbol (http://www.kopimi.com/kopimi) on the site, making it clear that they encourage copying.
Irony is flowing in the air from both parties. TPB certainly had better alternatives than being 'angry' about such an incident. It's understood that CIPAC tried to play it clever. However it could've been such a smack to the face to CIPAC if TPB played it out its PR in another way.
Genius move, but surely CIAPC will settle with whatever fee if it comes to anything. That case going to court can be nothing but bad for CIAPC - anything they say in defence will be strewn against them in future, a ruling either way costs them PR or legal precedent. Wouldn't like to be their lawyer.
Why would TPB settle? They make more than enough money from porn ads and autoplaying popunders. I'd think they'd relish the publicity and would love to get an actual judgement.
According to the article their terms give a fee for breaking them - I expect that'd act like an upper bound on what they can get in court. In that case, settling without legal fees would surely be preferable?