That example you chose was a bit meta (perhaps intentionally so). I watched "Good Copy, Bad Copy" (which was fantastic by the way) and Tecno Brega is typically created by mashing up several popular songs into one. So yes, the artists are using the free CDs to advertise their IP, but their IP is derivative of IP from other artists.

I personally don't find fault in this, but it sort of weakens the argument that artists should give away their music by choice and make it up in concert sales when the music in question is composed of unlicensed tracks for which the original authors won't make a dime, regardless of the medium.