They are a tiny publisher, they dont really represent the bigger publishers and how they deal with their games.
Screenshots and photos have some strong restrictions to them too. You cant just take a photo of something and do with it whatever you want, even if you personally took the photo. Think of building interiors or people, or more fitting, what if I take a photo of some dude's painting, and I start reproducing his painting a thousand times, and sell the printed reproductions. I could argue that it is just a photo that I took in a public place (museum), but surely that wouldnt really help me would it?
I could take a photo of the UT logo and name, and make a crappy game, and put the photo of the UT logo and name on my box, and argue it is only a photo, but that still wouldnt help me...Even if the logo was used in a press release.
Stuff like this is usually fair use. You could use a screenshot of a game in a book, and no one would sue you, and even if they would, you could argue it is only one little picture to support your article or other publication. In this case however, they built their entire and very similar (its a game, not a book or a pack of milk) product with the material. Thats hardly fair use.
I dont think they will survive the lawsuit.
It is a shame that so many developers are trying to get hold of a publising deal, and spend years working on their sometimes great projects, and then these guys come in, rip off the entire industry, and do manage to get their "product" on the shelves. Slap in the face for independent devs.