While anyone in the music industry would have known a few things about copyright law, and I am surprised at Felix's lack of thinking on this one, I do feel sorry for him.
Things like this do happen in the scene. Unfortunately, he should have tried contacting P Diddy about this since they are such great 'mates'... rather than bagging one of Felix's BIGGEST supporters and who helped get Felix back on the map (well, until he sold his soul).
These kind of things can sometimes be legit - look at Aril Brikha and the mega rip that Shlomi Aber did on his work, and then did again for the almighty Basic Channel.
While Aril did go public, it was because there was very little legally he could do, so that was his only defense for his IP... Basic Channel didn't, but their dark voodoo magic has meant that nobody in their realm will deal with Shlomi now, which is pretty harsh punishment for someone wanting techno recognition.
Anyhow. Man, how bored am I????