The non-sequitur in his argument is the idea that the values created by “grouping” are not traceable to the individuals. Where the hell does that come from? Has he ever heard of the division of labor? If I live longer because a doctor healed me, the value came from the doctor. No matter how complex a society may get, all that exist and are acting *in reality* are individuals. Even if one points out that one’s life is much better with people in it, it is still those individuals who are the source of that value.
Since rights only become morally relevant in the context of society (because of the possibility of the use of force; your rights cannot be violated in solitude), they are the necessary organizing principle of any society. All rights that a society may claim for itself (such as national sovereignty) are merely delegations of said rights (e.g. law enforcement) and do not exist apart from them. At the point that any society attempts to override those rights, it has committed the fallacy of the stolen concept right there, and thereby wipes out its moral claim to exist. When that happens, what is actually happening is an attack by some individuals against the rights of others, and the principles expressed in the Declaration of Independence apply.
Living in the state of society (i.e. associating with others) is a way of life that yields certain benefits. As such, it’s a solution to a problem, a *method* (teamwork) of solving problems that are outside the reach of solitary men to resolve. I don’t see how a state of association can acquire existence, let alone rights. Does my method of working acquire rights because of the benefits I reap from it?
The proof that rights are individual consists in the fact that only individuals *exist*. Individuals associate; associations do not individuate. The group has no existence apart from individuals, but individuals may exist apart from the group. Groups are existentially dependent upon individuals. Individuals *cause* groups.
And since morality IS reason and rights are a moral concept, none of this applies to non-sentient entities. A bear isn’t violating your rights if he eats you, nor does a hurricane do so when it deposits your boat fifty miles inland. So, the whole issue pertains only to rational individuals interacting with one another, in a state of society.
As for the exceptions to that rule, e.g. mentally disabled individuals etc. well they are classified and dealt with as exceptions to the rule, of what Don Watkins calls “broken units”; as an issue they can be dealt with only after the basic principles have been defined by reference to human nature as such. Without the concept of rights, the question of the rights of the disabled makes no sense.
People who commit crimes forfeit their rights, but the principle of “let the punishment commit the crime” should guide society on which of those forfeited rights it can abrogate.