1)The developers weren't ethicle but ok they weren't and if the government thinks it's going to spend to much to fight them too bad their are more important things to handel out their first.
What I belevie is that it was the right thing to do because ifnot hey would have wasted all this money in fighting this and they also have the possibilyty to lose so they would have to pay all the layers and the law suit in the end.
They made the right decission because their are a lot of other things that the government could be spending their money on not just fighting to see who wins something that won't cure world hunger, unemployment, Aids, Welfare

2)This situation can be avoided by setting a precident from this case and inforcing harsher laws for those who do what the developers did, and make it illigal to do it in the first place. thinking ahead of these malicious mind would help too insted of just giving them money.