Within this past week, US anime licencing company Funimation dealt with this incident.
At a convention, counterfeit products were knowingly made and sold, for which Funimation filed a lawsuit. This could be seen as breaking copyright for very clear reasons. They did not have permission to create and make profit from series which were licensed. At conventions, many products are sold that are bought from overseas, or made by con goers in artist’s alley. But these products were made by the convention’s organizer’s company. It would have been less prominent if it were small maker, but because it was by a company, Funimation took notice.
Vaidhyanathan would most likely argue against Funimation’s claim, with his policy of a less strict copyright law. He would state that the creation of the counterfeit products would be an expression of art, and artist’s alley as evidence, they should be allowed to make products.