These supposed stories of public groups and charities being hit by copyright are legion, mostly on the web.
It's an easy way to attack copyright. Not that the stories are completely without foundation, but I believe copyright does far more good than harm.
The music industry is particularly under attack by anti-copyright activists. As a musician I've never been able to understand how copyright is holding back creativity, except perhaps in one small aspect of the industry - sampling.
For the most part musicians are best rewarded for innovation and creativity - think of the most revered artists, almost all did something new (Elvis, Miles Davis, The Beatles, Stravisnky etc), they weren't revered because they copied someone else's idea.
In addition, no one is compelled to copyright their work. Anyone can give their ideas away if they want. Creative Commons is a well established and perfectly legal way to share your work.
So, in my view, copyright is only an issue for someone who wants my ideas, when I don't want to give them away free.
That's bullying.