So new update in this ongoing bit of robbery. There is an MP3 out of an interview Timbaland did in which he speaks out on the situation. You can check out the MP3 here. You can skip ahead to the 6 minute mark where the discussion comes up. It seems that not only does he seem to admit to stealing the song by calling it a "sample" but he also gives a lot of disrespect to the chiptune and demo scene at large. Apparently the song is good enough to steal, yet he disses the person and scene that created it.
Originally found via VORC