bad url inserted in mystile files; next step?

so i checked all four files on my hosting server and only two files have the supposedly bad url code http://bit.ly/.

* File contains suspected malware URL: /home6/chromeho/public_html/wp-content/themes/mystile/functions/admin-functions.php
and
* File contains suspected malware URL: /home6/chromeho/public_html/wp-content/themes/mystile1/functions/admin-functions.php

I went back through all my backup files for these two files as far as January 2014 and they all have this url in them. This is where it is listed (see bold italic line). Does anyone know if this is normal code? Throughout the file there is reference to bitly but only as in a url form once.

/*-----------------------------------------------------------------------------------*/
/* Woo URL shortener */
/*-----------------------------------------------------------------------------------*/
function woo_short_url($url) {
$service = get_option( 'woo_url_shorten' );
$bitlyapilogin = get_option( 'woo_bitly_api_login' );;
$bitlyapikey = get_option( 'woo_bitly_api_key' );;
if (isset($service)) {
switch ($service)
{
case 'TinyURL':
$shorturl = getTinyUrl($url);
break;
case 'Bit.ly':
if (isset($bitlyapilogin) && isset($bitlyapikey) && ($bitlyapilogin != '') && ($bitlyapikey != '')) {
$shorturl = make_bitly_url($url,$bitlyapilogin,$bitlyapikey,'json' );
}
else {
$shorturl = getTinyUrl($url);
}
break;
case 'Off':
$shorturl = $url;
break;
default:
$shorturl = $url;
break;
else {
$shorturl = $url;
}
return $shorturl;
}
//TinyURL
function getTinyUrl($url) {
$tinyurl = file_get_contents_curl( "http://tinyurl.com/api-create.php?url=".$url);
return $tinyurl;
}
//Bit.ly
function make_bitly_url($url,$login,$appkey,$format = 'xml',$version = '2.0.1')
{
//create the URL
$bitly = 'http://api.bit.ly/shorten?version='.$version.'&longUrl='.urlencode($url).'&login='.$login.'&apiKey='.$appkey.'&format='.$format;
//get the url
//could also use cURL here
$response = file_get_contents_curl($bitly);
//parse depending on desired format
if(strtolower($format) == 'json')
{
$json = @json_decode($response,true);
return $json['results'][$url]['shortUrl'];
}
else //xml
{
$xml = simplexml_load_string($response);
<strong>return 'http://bit.ly/'.$xml->results->nodeKeyVal->hash;</strong><em>
}
}
//Alternative CURL function
function file_get_contents_curl($url) {
if ( $url == '' || $url == null ) { return ''; }
$data = '';
$response = wp_remote_get( $url );
if ( is_wp_error( $response ) ) {
$data  = $url;
} else {
$data = $response['body'];
}
return $data;
} // End file_get_contents_curl()
// Checks for presence of the cURL extension.
function _iscurlinstalled() {
if  (in_array  ( 'curl', get_loaded_extensions())) {
if (function_exists( 'curl_init')) {
return true;
} else {
return false;
}
}
else{
if (function_exists( 'curl_init')) {
return true;
} else {
return false;

the correct answer for me to what I thought was a problem would have been that the code: http://bit.ly/ is used to shorten long urls and it was not a threat at all.