some wikid points there inigo, and i think its good that someone as involved in the business as yourself has come on and put forward their comments!
im sure that if anyone tried to sue or take legal action against jetgroove wud find themselves in a complicated legal battle, as there are certains things that would be taken into account such as where they got the mp3's, did they buy the source records etc etc but basically, they are breaking the law they need to be stopped.
u have ur own mp3 based label so you've shown ur willingness to embrace the future formats that are developing and using them wisely, but i think everyone, well NEARLY everyone, agrees that these guys just have no regard for the artists, labels, companies that they are trying to make a buck out of.
a very messy affair is this one i think, and i can see it running on for a while!