If I take a photograph of something, don't I own the copyright to that photo? Even if it is a photo of the Mona Lisa or the Parthenon?
A CC0 license or some such could well be a reasonable hedge against such vagueness by making explicit the terms of use.
What your colleagues did is literally reproduce the work of another, and assert copyright on the copy.
What if I took the image your gallery took, used state of the art JPEG compression software on it and created a new optimized file, would I know be entitled to copyright on that?
In your jpeg example, I think (IANAL!) you might have had a stronger case if you artifacted the heck out of it, rather than faithfully recreating the original photo - the artifacts could be argued to be some form of artistic expression.
That being said, I am not convinced such reproductions should have full copyright protection on par with that granted an original work of art - but there ought to be some mechanism to recognise the effort and skill which went into creating it; otherwise there would hardly be any incentive to create high quality reproductions.
Tricky, that.
* https://en.wikipedia.org/wiki/National_Portrait_Gallery_and_...
People who defend the legal position with "But it's creative effort!" do not quite understand the test that applies, and are not actually explaining things correctly. The legal test in British law is whether it is original, the qualifiation that is used in the legislation itself, and there have been a few landmark cases in the 20th century where originality most definitely did not mean creativity. Indeed, it is one of the little-mentioned problems with BrExit that it has quite drastic effects on copyright law, as some of the legal tests that apply derive from EU Court of Justice decisions that may or may not continue to have force. It has been opined by some that the so-called "Infopaq" standard may cease to be applied by British courts, which may revert to older, lower, thresholds for originality.
So I guess I'm with the OP about being unclear what the value of the license is. Oh well, maybe it's just a simple CYA/clarify expectations/whatever.