I can see both sides of the argument on this one. But who doesn't know that they shouldn't use someone else's copyright protected material to make money? It's common knowledge.
I'm usually not one to defend big heartless corporations, but the family claiming ignorance about something so basic is a big red flag for me. Hmmm.
"The Walt Disney Company vs. Kool Klown Party People Inc" - I wonder if the bailiff will be able to read that aloud to the courtroom without cracking a smile.