Is Masterplan American?
I think the site is UK based - going by the website hosting and bits posted to the site. So, WOTC has two 'good' choices. They can use the upcoming Digital Economy Act to sue when it goes into effect next month or the EU copyright courts. Neither option is a good thing for WOTC considering the laws that protect software groups and companies in the EU. Recent cases, Apple in France and Mininova, do a good job of isolating the copyright claims to people transmitting the data. WOTC has very few legal options as long as Masterplan does not distribute the library files under those two systems. WOTC has a 'third not so good' choice that involves a suit in the US with Masterplan operating as an entity in the US through the internet.
It's why I can't see WOTC actually suing them in the EU. Mininova is GUILTY of tens of thousands of violations in the EU, and the only real penalty is the removal of torrents. The worst thing WOTC could do to them in Europe is say. "Remove those library files!!!! Oh wait, you don't host them." *shrug* So, WOTC is not likely to do much outside of the US. And, the US courts protect the software companies from petty lawsuits while allowing the small companies to counter sue for damages. The RIAA would be suing hard drive makers if people could actually sue for such silly things if you need a practical example. You know how easy it is fill a HD with stolen music? Every teenager in America would be named in the lawsuit against the HD makers. Ipod would be hit with a lawsuit every five minutes if you buy into the theory.
Sure, it's all just guess work on our end. However... Anyone that sits down with a lawyer more than once to actually piece together a license for a high traffic item in the digital age goes through the spiel. It's not hard to stay out of trouble for software devs. The only tough choice is opting to defend which is expensive. And, I have no problem pointing to the groups like the ACLU, FAP, and every state level bar association in the US if a large corp is unwise enough to actually sue a small software company under the SLAPP style laws. Lawyers would eat them alive.....and not charge Masterplan a cent because WOTC is a very Deep Pocket to pick.
Forget that stuff, there's still tons of 4E features to implement. Why should they split their talent across different projects? At most, they should leave room for fans to generate their own alternative rulesets.
If they had funds from a counter suit, they could split their project and focus on the 4e stuff.

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