No, profits don't make a difference in illegal activities. Even if he didn't make any profit, according to Galenmereths source he sold pokemon-named alcoholic drinks - and pokemon is targeted at minors mostly. And even if that wasn't the case - the activity might still be something you don't want to be associated with your own IP. And even if someone does not make profit and does not break the spirit of your property: Have you ever thought of what the people are talking about when they say they can't risk voiding the copyright? If you allow even a few people getting away with abusing the IP for non-profit reasons because you have absolutely no problem with what they're doing, then suddenly there comes a competing company selling a fangame they did. And if you try to stop them from profiting that, they go to court and claim "X allowed everyone else to make fangames - so he now has to allow us to make a fangame. And he can't claim any of the money we're making, because it's only compensation for our own work - he never charged anyone for the use of his IP" That is what all those C&D's against even small hobby projects are about - not neccessarily that the hobby project would harm the company directly, they only set up precedents that can be used to void the copyright if a competing company tries to do that simply to destroy your main source of income, so that they can dominate the market instead of sharing it with you.