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A few comments from an old lawyer:
First Amendment protections are there to protect the “utterers” of speech we find offensive, not just the speech itself. Words do not have rights. People do.
There are certain restrictions on speech, (FIACT, Fraud, Violent overthrow of USG, etc) but none apply here.
The people’s rights were clearly violated here. They were harassed by police in an illegal police action, they were embarrassed in public, a reasonable person watching this could reasonably assume they were doing something illegal and therefore had to stop, etc.
The officers and those directing them to take the illegal action are all liable.
http://www.lc.org/index.cfm?pid=14097 It’s probably a “$20,000 to make it go away” case.