Federal law has a minimum distance between the turn signal and brake lenses. It also has standards for brightness/distinguishability. It's called the FMVSS,
http://www.nhtsa.gov/cars/rules/import/fmvss/index.html and *no* integrated signal/brake setups on motorcycles meet the FMVSS standards. They cannot be made to meet them, which is why they are *always* illegal. many states enforce these requirements in their inspection programs, fewer states will enforce it through traffic citations, but every single one will find the owner of such a system partly or completely at fault in accidents like these.
Edit to add: bikes I've seen with integrated setups were too dim, and the turn signal (if you could call it that) was often perceived as a slight flicker in brightness. Most times I was unable to tell if the rider was signalling left or right. The onus of clarity when signalling is on the signaller, not the viewer. A lawyer will run you $5k or more, and since your equipment clearly is illegal you will lose your case. I'd revert to a legal and functional setup and call it a lesson learned.