This lawsuit will go nowhere. Courts do not handle these types of issues. Copyright law has exceptions for this type of use.
You could be right. The case seems to hinge on Trademark Infringement:
13.
CAIR has misappropriated copyright protected material from Michael Savage and made this material available on its website. This is actionable regardless even if CAIR had a genuine charitable purpose in using Michael Savage’s material. However, even genuine charities must gain the permission of a copyright holder before using the copyrighted work for fund raising or other purposes.
http://www.savage-productions.com/Savage_CAIR_suit.html