> What kind of bullshit argument is this? Really? Works created using illegally obtained copyrighted material are themselves considered to be infringing as well.

That isn't true.

The copyright to derivative works is owned by the copyright holder of the original work. However using illegaly obtained copies to create a fair use transformative work does not taint your copyright of that work.

> Even if not, you agree that they infringed on copyright of something close to all copyrighted works on the internet and this sounds fine to you?

I agree that they violated copyright when they torrented books and scholarly arguments. I don't think that counts at "close to all copyrighted works on the Internet".

> The consequences and fines from that would kill any company if they actually had to face them.

I don't actually agree that copyright that causes no harm should be met with such steep penalties. I didn't agree when it was being done by the RIAA and even though I don't like facebook, I don't like it here either.