This eurotrash beat was originally recorded in 2000, when it was performed by an obscure europop band named "Tempest Project". The beat was produced by Janne Sunni, a 24-year-old music producer and demoscenester (videogame music programming nerd) also known as "DJ Damage". Recently, the producer posted a video on YouTube calling Timbaland a thief, and this started the controversy.
Sunni's beat had become a hit once it won the so-called demo combo competition on a multimedia-party called Assembly 2000. Several years later, the beat was arranged into a so-called Commodore 64 MOD demo by another Finnish instrumentalist Glenn Rune Galefoss, for use in a demo version of a video game that sounds as if it had been made for the Commodore 64 console.
This is what the ultra-niche demoscene is all about: programming nerds program internet only music that sounds like very old gaming consoles such as the Commidores, Ataris, Tandys and the prehistoric Amiga, which cannot play just everything. This videogame music is not copy written, because it is distributed for free and the authors never pay RIAA for copywrite protection. Besides, the music is used in so-called "cracktros" before pirated and shareware software, which makes it totally illegal. Anyway, Sunni and Timbeland probably just found the same SID preset in their Casio keyboards or their Acid 7.0 sample package, so it is just a coincidence. Timbaland would never waste time to search the warez sites of the internet for obscure, crappy electronica for inspiration.
Incidents like this happen all the time, and the only reason for the media coverage is the collective pride of an army of herb ass nerds with a vague understanding of copywrite law. These geeks should be grateful and pay Timbeland some royalties because he bothered to make the Casio preset decent enough for listening. That Finnish girl would not be getting any money with her shitty 8-bit Nintendo bleeps anyway, so Timbeland is actually helping to fulfill the poor girl's lifelong dreams of becoming a rich American pop idol. God bless America and the great leader George W. Bush!