Those of you interested in Creative Commons may remember that the organisation was sued by a family in Texas as a result of a Flickr image that got misused by Virgin Mobile Australia (more details here). The complaint against Creative Commons from the Chang family was with regards to negligence, as they argued that CC owed a duty of care to its licensors, and should have educated them better. It is not clear from the blog entry about whether this action followed conversations with the Chang family, but I noticed that the plaintiffs also dropped their case against Virgin USA, which leads me to believe that this is not a settlement.
It seems to me that the Chang family has had a look at their case, and probably realised that their strongest claim is against Virgin Australia for their disastrous campaign. Although I think that the case against CC was clearly weak, I do believe that the organisation should think hard about situations in which a licence is offered as the default option. While it may increase licence take-up, it may create more situations like this one.