I don't mean to steal the thunder from the poster, but I highly doubt it matters. At all.
Just like the indignation with Apple over the closed iPhone, or the terms of service or a host of other things didn't really matter. Or all the flack given to MS (bing stealing search results), or Oracle (mishandling the community, Patent trolling) or Google (not releasing source code, ripping off open source) or IBM (offshoring nearly their entire workforce), non of it really seems to matter.
Everyone loves these stories, the little guy calling out the big guy and showing them what's what. But does it change anything? Does it impact the bottom line of that company? I can't think of a single time that it did, either immediately or over time.
Don't get me wrong, I would like it to matter, but in an age of millions of users, billions of dollars, 100s or even 1000s of people being aware of something and starting grassroots campaigns will result in a speedbump at best or a blip at worst for these mega corporations. Think of facebook and the guff they got about their TOS, twitter and their killing off of competing apps. Non of it mattered; people moved on continued to use those services because it was easy, because it was what they knew and because, in the end, people will default to cheap, cool and easy.
I would call that a soft win. Urban Outfitters is still in business, still printing money, still going to infringe in the future and people will forget their transgression in a matter of days.
Great, they pulled the particular piece because they got enough negative attention. How many other things on their shelves are infringing that we don't hear about? The point remains that an even if this one case was "won", it won't change anything. Companies have, do and will continue to run over people because the vast majority of people simply do not care.
If an incident like this occurs two more times this year, the company could be in real trouble. Their target customers are on Twitter/Facebook and will probably hear about this fiasco.
Fashion houses should somehow revise their chain of implementing creative work. I don't know how it is in UO, but afaik from other news from last years, where apparel companies sold copied flickr/blog/digart/etc creation, they don't do such stuff in-house, they buy it from outside (some sort of providers, companies or freelancers, don't know). I think it's a common practice for cheap modern apparell - well, creation and production must be cheap. Sometimes bought derivatives happen to be ripoffs, f.ex. look at this example (it's in Polish, but just look at the images on the left) http://wyborcza.biz/biznes/1,101562,8016144,Amerykanka_oskar...
Just look at those cases http://youthoughtwewouldntnotice.com/blog3/?cat=5 The case above is just one of dozens that are brought to daylight and probably hundreds that don't. Of course the brand has to take full responsibility, there's no doubt, so they made a good decision pulling back the jewelry.
http://www.regretsy.com/2011/05/27/urban-outrage/