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UW - the easiest way to take care of this is to report the issue to Google using the spam report located inside the webmasters tools area (the login sction) as these actually get read - the offending domain should get removed from Google within a day or two
Secondly, and more importantly, while I see both sides as I know how those scripts work and they do scrape the links that Google has pointing back to your site, you are very correct in that if someone does something whether intentional or not (although in this case the use of a tool like that makes it intentional no matter what) - they are held responsible the same way any program is for anything that is outside the relationship boundries we tend to develop in the biz.
This is very similar to what one sponsor has been doing for many years (Dave will back me up on this one) and still does it to this day - which has led to that sponsor being blacklisted many places (although they are evidently going out of business now) and the loss of many WMs promoting them.
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