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If they use stolen content and they don't remove it then their license is terminated -- period. If they continue to do the same thing they will loose their license without notice. There is no user uploads for TEVS (its all webmaster only) so their is no way to put the blame on someone else (like a user upload).
The unbranded version doesn't mean they get away with anything. I know all the sites running TEVS. It just means that it doesn't say Powered by TEVS. If your not sure if the site is using TEVS or not, email me anyway. I will check it.
No loophole here.
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