The iBuzz creators posted details of the threat on their site (warning: NSFW. No nudity, but close enough), noting how strange it is that Apple took over a year to go after them. They also point out the creator of another iPod-related sexy toy, called the gPod, whose inventor is obviously having a problem registering a trademark (for obvious pod-related reasons).
Not to worry though - towards the end of their page about the legal action, iBuzz states they are about to launch a new site for the upcoming iBuzz 2.0 (no, really), complete with a shiny new silhouette-less animation anyway. Sounds like people are doing a lot more than rocking out with their iPod these days.