Tried post this earlier, but going to try again.
Basically, I'm very concerned for FSS at this point. First problem is typically with illicit activity such as hacking, typically it's considered a federal case, not local. This is due to the very essence of the internet being not centralized in one location, but across the country, therefore is considered interstate. I'm pretty sure that FSS's hometown is going to be a moot point since part of the case will no doubt include something online. Otherwise, we'd have an answer for who to charge sales tax for online purchases.
Of course, this assumes that the case is actually held in the US. Problem is, the copyright and and plantiff, which would be TSA, is in Japan. Basically, there's a chance that this could end up like those cases when people are drug to the US to face charges, but in this case, FSS would be drug to Japan and turn into an international incident. My experiences in Yokosuka with that Navy has seen numerous cases where the only reason why some sailors faced a captain (or even an admiral in one very dreary weekend) instead of the host country was the status of armed forces agreement with Japan that stated those cases are handled by the US rather than Japan. In a country without that agreement, like China, you do something wrong, 99% chance your screwed. FSS doesn't have this status agreement to protect them and the only thing that could save them would be a diplomat agreement. FSS, if you read this, trust me, international incidents are very ugly and never, ever end well.
Then there's the problem of their argument. The problem being they didn't obtain permission before starting. The crux of some major cases is about if you had permission to proceed before using a work for your own. This is why Orphaned Works, works in which you can't ID the owner, is such a big deal. Because without permission or not receiving permission is before starting is infringement, it makes it impossible to do things such as using a song you like but can't because the person who wrote it fell off the face of the earth.
The fact is, FSS is pretty screwed if they really are trying to lawyer up. I wish I could quote cases and go into detail, but I only had 15 minutes to barf up a quick writeup of alot of issues. They really need to come to their senses that even their best case scenarios could still result in thousands of dollars of debt. If I was a donor and saw that they were planning some sort of legal battle right now, I'd be beating FSS' down down demanding a refund while they're still on the radar.