They were putting things out too soon. If they had waited until they were finished, there would have been nothing Square really could have done...But they came out with lots of character & monster models, MP3s, settings, etc...People all over got a hold of 'em...and said people made a petition for Square to actually make CTR official...These stupid people e-mailed their petition to Square and low-and-behold, the eye of Square was upon CTR and they gots them a cease and desist order...
Personally, I'm not a big fan of fans remaking or reinvisioning a game in most ways...I didn't like any of the remakes going on nor have I been a supporter of the novelization project...It's not that I see it as not being 'right', but the fact that these things can even minutely change the original story and the fact that they aren't official is unacceptable to me...