I don't use Flickr or had any plans to open an account but my Fine Arts professor pointed this out. It's just another loop whole that the online world has created that may be closed because someone took it a little too far. I honestly hope they win their case.
"The net result is that they are suing Virgin and Creative Commons. I feel bad for the girl, who did’nt have any say in the matter, and for the family. If you’re interested here is the comment from the person who took the photo, Damon Wong. His main complaint is not being notified. I don’t think that’s part of the license. Attribution however is and he has a point there which might give him a case against Virgin."
Virgin Uses Image, Creative Commons Gets Sued -- digitalpodcast.com