IMHO, the defendant appears to be nothing more than a corporate terrorist using claiming protection under the DMCA. I guess they were cynically hoping to drive their competitor out of business before an independent judiciary caught them. For once, the good guys win!
This type of behavior is what is killing small business in this country. It is bad enough that people use the legal system to win in court what they can't win through fair competition. It is even worse that there are blood-sucking attorneys willing to aid them all for a few dirty bucks. What ever happened to good old American fair competition?