They aren't a species. Wolves (red and grey), dogs, and coyotes are all technically the same species, since they can freely interbreed and produce fertile offspring (unlike horse-donkey offspring, mules, which are sterile).
The reality is that there is no good definition of species, and cannot be. Yours is a common one, but has a lot of problems - declaring wolves and pomeranians the same species is a tough bridge to cross for most people: you've made the definition so broad it means little. Biology is messy and in the real world there are no clear-cut, convenient dividing lines.
Another problem with that definition is that there is no transitivity in real biology. Animal A and Animal B may be able to produce fertile offspring. Animal B and Animal C may be able to produce fertile offspring. But Animal A and Animal D [a sibling of Animal C, thanks KMag for that point!] may not be able to.
Of course, we also would find it strange to declare that two humans incapable of producing fertile (or any) offspring different species.
Maybe this discovery will lead to something positive for the their species.