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To be fair, would ASDA sack an employee for shoplifting as Morrisons? Unlikely.
But then again theres a moral issue, particularly with the state of the industry and how things have changed since tubes. The right thing to do would be ask them to take down the content, after asking if they've permission to use it first of course, but personally if it's generating significant leads - ask yourself what are your competition going to be doing, do tubes take a proactive stance or wait until they're contacted/DMCA'd to ask for removal.
So, until the program who owns the content contacts you to ask if you know what affiliate in question is doing, in which case the obvious answer would be "no, I didn't have a clue", you can either let it slide and sort it when you have to, or just get the affiliate the remove the content an let them continue promoting you ethically.
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