Earlier quoted context omitted.
Microsoft did not steal the code. an Employee or contractor did. They, the individual(s) that stole the code is who is guilty here. As soon as Microsoft was made aware of the situation they pulled the offending code/software immediately.
Wrong Wrong Wrong. Microsoft is guilty of it because they are the ones who published the code/product as their own. They hired someone to do the work. Yes, that person ripped of Plurk, but Microsoft failed to verify their contractor's work. That makes them culpable. Plurk was ripped off by Microsoft. Full Stop. Now, Microsoft has it's own options with respect to that contractor, but their swift response doesn't erase…
Plurk did get a ton of free PR from this. For thousands or tens of thousands of people, this will be the first time they've heard of Plurk. To claim that Plurk was somehow "damaged" amidst all of this is just stupid. Yeah, they were ripped off. But nobody got rich off of it. There is no money to chase down. Plurk could net themselves way more money (or rather, any money at all) by trying to generate new profits by taking advantage of all the free PR they got. But they're throwing a hissy fit after Microsoft has done their part in fixing the issue (pulling the plug on a product that wasn't even released yet anyway). As others here have said: what a waste.