Comment by gte910h

He doesn't gain rights to distribute since he was unaware of the infringement. Every poster he stuck out there, every web advert he paid for: possibly liable for damages for it.

Now that he's aware, and appears to be uncaring about the matter while distributing the infringing work further, he may be liable for even more per infringement.

The artist originally came to SL to ask him to handle this, presumably amicably and for "yeah, we'll pay you like we would have had we hired you" type levels. Now that SL is baiting the guy, he may just ignore the ad firm and go straight after SL as well.