Well, I’m no expert in the legal field… but if we were hit with a C&D, it wouldn’t end the project. At worst, we would just have to remove the show songs. A C&D can’t force us to stop working with fan-made music.
 
Besides, that would only take out a small portion of the music currently in the game.
 
The fans sure make some great music! And lots of it too!!
 
And to my knowledge, money has never been involved. I myself just directly donate my time, editing skills, and artwork. The only thing I got out of it was a couple watchers and llamas on DeviantArt.
 
But let’s not forget, this project was designed to let us celebrate the fandom in a positive way that builds self-esteem and establish friendships. Why would anybody want to stop that?

Woah, nice!

One thing I do know is that they gave a copy of the work to date last year at EFNW to Daniel Ingram, so that may help them in terms of arguing the validity of the project. Also, we’re talking about something that is at least in line with the show’s theme compared to FIM.

@Dax Rattler  
But the good news is this has something Fighting is Magic didn’t: a full release. Granted, it would no longer go down at cons, and we’d lose a dedicated team. It would nonetheless still enjoy continued community support and redundant P2P and file host distribution.

@Background Pony  
So was fighting is magic, if money changes hands I would be very careful if I was these guys.

Huh. Cool.

@Dax Rattler  
Why? It’s completely non-profit.

Looks pretty cool. Wish I had a mic :/

I’m guessing it’s not an official product since they are using JJ for the cover art.  
They are gonna cop a C&D in a flash.