Copyright law was originally instituted to cover written works. There is a ton of case law.

It would not have been kind to them.

Nobody "forced" them out of business, they voluntarily quit when they realized their sham was exposed.

In aggregate, their behavior easily qualified as multiple felonies; and damages alone would most likely have been ruinous.

I know I would not want to roll those dice.

So I think you're mistaken about essentially everything you said above.