Would you say it's an AdSense issue or AdWords issue?
neither Google Adsense nor Adwords cares about it
I would hope that is not the case. They should care about the quality of partners participating on both programs. I can't see them preventing this sort of thing but I would think they would take reasonable action against the offending website or webmaster. Plagiarizing content is one thing but scrapping an identical copy of a website with the parent company name and copyrights still published is blatantly criminal.
If a questionable webmaster can scrap an entire page of content to spawn industry and keyword specific AdSense ads, can they really be trusted with delivering real traffic or clicks?