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I suspect that one of the sites they plagiarized which accept PP donations/subscriptions asked PP to take them off or risk the large news company switching to another payment processor.

I don't know if it is too harsh. What seems unfair is that paypal gives no reason.

Well, there's plagiarism and then there's impersonating a well-known (admittedly in niche circles) brand to make money. I think they made a good call here.

So, rather than using our existing copyright / trademark system to handle cases of brand impersonation or stealing content, we're just going to rely on payment processor companies to punish people? That sounds like a really bad idea.