Hey peepz. Im a mate of Bento, and I have some experience making money from Flash design, and with the site in question.
Bentos music was made available through the creative commons license agreement, hence his work cannot be used for any commercial purposes without his prior consent/license.
The site in question has paid for exclusive rights to this illicit flash. This means that the author has received a lump sum payment at the time of publication. Typically this payment can range from $500-$2000 US depending on the flashes chances of being a hit. Considering the 200,000+ views, i would assume this guy got at least $1000.
The author cannot rerelease his flash without the sites branding, nor release the source file. The site does not claim ownership of specific content, ie if i make a character i can reuse this character in future projects without this sites affiliation. However, the site does state that the flash must be original work, or work that the author has consent to use.
As it stands, the author is liable to both the site and Bento, as he has essentially taken money from both of them. Also, the site has broken its own terms and would want to sort the matter out as cheaply as possible.
In Bentos position, i would contact the site and politely express the situation and your concern on the matter. Make it clear that you are unhappy, but would like to resolve the matter peacefully. I would find out from the site how much they paid the author and contact them. Again express the situation and attempt to make an agreement, preferably full credits, linkage, and since proper course had not been followed in regard to the license, a cut of the money. Let the author know that you may be willing to assist in future flash work if proper course is followed.
Also, Bento, it wouldnt hurt making a forum thread at NG either, as there would be many flash/music artists who’ve been in similar positions, and many who may hold influential positions at the flash sites that would show your work.
As it stands, the flash must be removed, and the author would legally owe both parties compensation, so i think it unlikely that an agreement would not be reached as both site and author would want to cover their butts. So long as both parties understand that Bento has the power here, and Bento goes about it tactfully and politely, i feel everything can be resolved peacefully.
The site is not unfriendly and should be more than willing to hear and help Bento out in this.