I informed them that their argument has no merit, but the copyright issue is not the major one here. After all, they could have used our logo with no issue if they simply credited it to us/Blanko.
I've tried to get a copy of the video, but for some reasons all my attempts at ripping it cut off towards the end. In any case, I have the first 2 minutes and 45 seconds of the video backed up, which covers the point succinctly.
EDIT: Wow, they already censored it! The badge is now tastefully blurred.