These startups break laws, pay the fines and end up just fine.
Remember that it was Sam Altman who proposed to change the YC questionnaire to screen applicants by incidents where they have successfully broken rules. YC even boasts about that.
That thought process puts them in the same boat as: Theranos, FTX, Lehman Brothers, Bear Stearns, Countrywide Financial, Enron, Washington Mutual, Kidder Peabody, and many other companies which no longer exist.
So if (since?) they lack the ethical compass to not break the rules, perhaps a simple history of what happens to companies that do break the rules might be useful guidance...
This is such a weird issue for HN to be upset about when other IP related issues (e.g. companies suing for recreating generic code, patent trolls, trademark colors, disregard of paywall, reverse engineering, etc), people here overwhelmingly fall on the side of weaker IP protections.
I guess the diff is some people just pick the side of "the little guy" and the example of centi millionaire beautiful actress vs billion dollar founder, the scales tip to the actress
What else do you think is going to happen?
The entire company gets shut down?