What sort of crack are they on that they think unauthorized use of an entire work for commercial gain is fair use? I think copywrite laws are ridiculous but that is a pretty low bar they are trying to set.
They should have to pay for their usage or retrain the model without it. Going to guess they would prefer to pay up.
I was going to ask if it was Metallica who used to tell people to tape their songs off the radio but then got annoyed at Napster for spreading their songs.
https://youtu.be/fS6udST6lbE