Let's flip that around. What offense do you perceive being given to the family?
Yes, their family member was killed, and that is tragic. But the picture didn't kill him, nor did the article.
Yes, the article had a mistake (and a pretty bad one at that), but surely no one thinks that it was intentional? And if not intentional, then no offense could be intended.
So, unless you come up with another reason to be offended, all we have left is a money grubbing lawsuit that is not only not intended to "protect" the dead man's dignity, but instead essentially robs him of whatever dignity he may have had.
I don't know if it is patented (can't imagine it isn't though), but copiers already incorporate very similar sounding "technology". They are programmed to not copy money, at least U.S. money, don't know about other countries' currency.
But someone from a lobbying group for the legacy copyright players pulled out the "you're all so smart, nerd harder" card by saying that if Silicon Valley can build a self-driving car, surely it can build a technology that can determine what is and what is not fair use.
And on the day that they turned on the technology that can determine what is and is not fair use, it looked at humanity and despaired. And then blew it all up. The end.