Another possibility: This thing goes to court, drags on, generates a lot of publicity for Kickstarter, and KS gets out of the whole thing for basically $170,000

Another possibility: This thing goes to court, drags on, generates a lot of publicity for Kickstarter, and KS gets out of the whole thing for basically $170,000 plus lawyers fees and everyone ends up with a far clearer understanding what KS is and of what exactly is owed to whom when a KS project succeeds or fails.