You know absolutely for a fact that CleanFilms did not have an agreement with the copyright holders? Since I am a member of CleanFilms, I will be waiting to see what they have to say.
As, noted this was a horrible AP article; if you google the history of this story, you'll find these various Utah groups started doing this completely on their own and with NO agreements at all with the copyright holders, and the various lawsuits started flying virtually immediately.
Yes, if clean films had an agreement there would be no lawsuit. That's so obvious that it's a nonargument.