i don't really get it some of it i do like the hypocritical part but not so much the rest

FYI, HorribleSubs isn't a fansubbing group; they're a ripping group. All they do is rip streams from Crunchyroll (as in this case) and elsewhere, restyle the subtitles if they're soft-subbed, and release them as is. So, it's not like Funi was using a fan translation in their work, but Crunchyroll's official translation, which their license of the show most likely did give them the rights to.

It's still somewhat hypocritical that they downloaded and used an unofficial stream rip while at the same time suing others for doing so. But at least they didn't actually rip off a fansubber's work.

@Kei:

That does seem pretty double-standard of them.

@TimeChaser:

In terms of the story itself, the present information suggests that FUNi was either using the video as a substitute for footage they hadn't received yet from Japan, or using the subtitles as a base for their own subtitles they added to their own final release.

Whichever case it might be, the rub is the fact that they're using fan translated material when they have a well-known stance against the download of them. License or not, that's a bit sketchy, considering they've gone so far as to sue BitTorrent people over One Piece.

@cougarsama:

FUNi was under consideration for sale by their parent company, but there were no substantial offer, so they scrapped the idea for now.

@Allie Elric:

Ok, that makes more sense then. :)

@TimeChaser:

Ah, no-- I meant they don't have the video in time for whatever reason. They're using the video, not the translation.

Excuse me while I reread everything to see if I got it right. x3

@Allie Elric:

Hmmm... That kinda makes sense, but at the same time it still doesn't, because one would assume they'd have the proper scripts done up for dub recording. I'd hate to think they'd just use fan-sub translations in a pinch rather than wait to do a proper translation/adaptation.

@TimeChaser:

l think what they're saying is that when they don't get the material on time for the voice actors to record they use fansubs, that way the schedule flows and there's no delay.

Really?! America's Greatest Otaku? This is more disturbing than FUNI doing something sensible.

"Wait, they can't make a profit... but I can! Hooray money!"

So... I don't quite get it. Are they using these fansubs as a substitute for their own translation? I thought they had people who wrote official English scripts and subs for the shows they licensed.

I think it's more than a little hypocritical of them to do that. If they really believe that fan driven subbing is so bad for the industry then they need to not turn around and use it themselves.