Ah yes... my old college band made flyers with lifted Velvet Glove art too, in 1991-92... We didn't give a fuck. We also ripped off P. Bagge and Charles Burns. We were into comix. We needed quick fliers for our little punk band; we weren't making art. It was entirely benign. We probably would have said we were spreading the word about something we were excited about; that we wanted to turn people onto.
Anyway I find I can't really summon up much righteous indignation about this.