Seems kind of funny for TPB to be threatening a copyright infringement lawsuit. But then again, it's also funny for a pro-copyright organization to be blatantly ripping them off...
Genius move, but surely CIAPC will settle with whatever fee if it comes to anything. That case going to court can be nothing but bad for CIAPC - anything they say in defence will be strewn against them in future, a ruling either way costs them PR or legal precedent. Wouldn't like to be their lawyer.