[radicalbyte]

As far as I see it, you're 100% right.

Or do we want a to live in a society where everyone works for free whilst only large organisations can profit?

The sad part of this story is that the Mail are probably loving the free publicity. They'll earn way more in adsense through doing this than they'd have earned had they followed the rules (and not acted like jerks).

My opinion is that you shouldn't have to settle for the fee. You should get your fee, or the revenue earned from the article. Whichever the lower.