I sort of agree with your sentiment but... I could be wrong, but this is for a film school (or at least film course) and this sort of thing happens all the time in film school. Cuz everyone in the film industry expects to get paid (except for the interns) and you might need a pro to help you out on a project.
It's not like that. Their professors gave permission to get outside help because they realized how absurd their expectations were midway through the semester.
There's nothing wrong with selling copies I don't think. What about that girl who made millions selling the same sparkly MySpace skin to thousands of different high school girls? I've mostly copy and pasted old stuff and changed it to fit this project. So it's not really work I've already done. Think of it like when the Quake 3 game engine is customized for Jedi Knight II or something.
Your roommate is paying you to do his homework
and
In order to "earn" that money, you're providing him with work that was already done before.
Am I the only one who thinks there is something fundamentally wrong here?
This thing was f*cked up before it started and needs to be terminated. Now.
If your roommate is in college to learn something, leave him alone and let him learn.
If you want to start a business, either drop out of college and start it or do it outside of class.
If you are as "awesome" as you claim, then find one of the 12,309,384 other ideas out there and run with it.
Nothing good will be harvested from bad seeds planted.
Oh, and while you're at it, read this:
http://paulgraham.com/good.html