I don't know how I missed this until today, but I just read the entire thread, and I think that director has no business being around students. She is dishonest and manipulative, pompous and pretentious, and she went on teaching her students terrible lessons even after the fact. If they graduate from Towson and model their behavior on hers, they will never act with integrity and face lifetimes of error, defensiveness, finger-pointing and failure.
She should be fired, not so much for her error in changing a copyrighted work--there was a teaching moment there--but for the way she conducted herself AFTER that error was exposed. Her employment should be terminated and her involvement with students ended.
On the other hand, the lighting designer/department head acted with complete integrity. Any student facing a difficult situation in the future could say to herself or himself, "How would Mr. Herzog handle this" and be inspired to do the right thing.
Drew Cohen from MTI also acted beautifully. I hope the students have come to realize that MTI is protecting the rights of the artist, not the rights of "corporations and lawyers." It was despicable of her to attempt to hide behind that.