Even if the code was considered infringing, it would only need to be
revealed to those customers that asked for it before three years (since the
ruling in this case?) have passed.
IANAL, but I don't understand where this comes from. TFA says that code
in question is licensed under the GPL, version 2. According to section 3
of the license, distributing binaries requires you to do either:
(a) "Accompany [the binary] with the ... source code ...."
or
(b) "Accompany [the binary] with a written offer, valid for at least three
years, to give *any third party*, for a charge no more than your cost
of physically performing source distribution ... the corresponding
source code ..." [emphasis mine]
(there is an option (c), but it is unlikely to apply in this case).
Note that if you choose option (b), then you must distribute source to anyone
who asks. Moreover, Red Hat alleges that Twin Peaks Software has done neither
of these things. If Red Hat is correct, then Twin Peaks Software has no
right to distribute any binaries at all, until they have their license
reinstated by Red Hat.