No, that's a ROM hack. ROM hacks don't count because the lawful acquisition of ROMs is unlikely at best (even if you own the game downloading off a ROM site is illegal in several countries, and dumping ROMs yourself requires special equipment that only the most devoted collectors have) and some companies see all ROMs as automatically illegal even if self-dumped. I was specifically meaning mods that build upon game data from an installation and/or the game's disc, methods for which no cracking or special equipment are required and which any game owner can legally perform with a humble floppy/CD/DVD drive in a few clicks. This simply isn't the case with cartridge-based titles.

Hmm, i dont understand the message from TSL site. They say they got a noncommercial license from Sierra, but then Activision overturned that license. But Im reading that it was Vivendi/Sierra who bought Activision, not the other way around. So what gives?

http://mattbg.blogspot.com/2006/02/customer-vs-consumer.html
Dosfreak, you from the dosbox forum?

I won't get to read my fanfiction about Jason Bourne having hot mansex with Liam Nieson's character from Taken? Oh whatever will I do...
Seriously though, this isn't anything new. Any time a remake or a fan-make are being made of anything, this is a threat. It sucks that they actually got permission before, but there is no reason that Activision should honor the company they swallowed's decisions.

If anything, this will make people come up with NEW IP and come up with great stories and works of gaming, instead of another startrek remake.

Yup, that's me.

From what I've heard, it seems that Vivendi offloaded all its gaming related stuff to Acti-Blizz after they bought them. I assume they wanted all their gaming-related stuff under one company. Makes sense, even if they didn't realise that Activision would overturn their previous decisions. Either way, they don't seem to care much.
It does make me worry about AGD interactive, Infamous Adventures and Magic Mirror games though. IA have a SQ2 remake on the way, whilst MM have a KQ4 remake in early production.
AGD have suggested they are no longer making remakes (although there are rumours of one final remake before they shut up shop), and are concentrating on their business (Himalaya Studios - their first game being Al Emmo and the Lost Dutchman's Mine). They have several games in production, so I imagine they are already concentrating fully on that. No word from them (that I've seen) about the activision situation.
[edit] Apparently AGDI have been told that they are allowed to finish what they have started (indicating one more remake) but then they are not allowed to start any new projects. It also seems like TSL had the game fully made, just sent it to Activision for review before release (as was the norm with Vivendi for previous remakes with non-commercial licensing).

To be honest, I think it more accurately shows how little they know (which was probably your point, but I'm tired).

Excellent article by rockpapershotgun.com on the issue:
http://www.rockpapershotgun.com/2010/03/02/there-is-no-silver-lining/
They say exactly what I'd like to say, only less stupidlier.
I wish there was some way to scream to the game publishers "WE ARE NOT YOUR ENEMY" and make them understand. With the way things are going now, the only hope with is that they collapse under their own hubris. Sad.

Links to forums discussing this.
Those at Infamous Adventures (KQ3, SQ2) had this to say about the TSL c&d…
http://www.infamous-adventures.com/forum/index.php?topic=3359.0
Magic Mirror (KQ4) games have heard nothing from Activision/Vivendi…
http://www.mmgames.org/KQ4/SMF/index.php?topic=524.0
Here’s a similar thread from AGD Interactive (makers of KQ1, KQ2 and QfG2 remakes)
http://www.agdiforums.com/forum/viewtopic.php?f=19&t=14582
A key point from the second one (AGDI) is a post by one of their programmers…
“Given that Activisions statement on us was that we couldn’t start anything new, just finish what we were working on, I’m not surprised to hear this, though it’s very much a shame. I can’t think of a more anticlimactic way for a team to have years of work reach its conclusion.”

That would be one positive outcome. Another would be if Activision bought the project or hired the team, and continued on toward a finished retail project. They could give it a special lower price as a nod to the spirit of the original agreement. Not holding my breath for that one, though.

Then they get yelled at and shunned for "eating up the small independent developers" and the like. Don't believe me? Look at EA. And, in some circles, Valve. Hell, a lot of people are already starting to blame Activision for Blizzard's decisions with SC2 (and EA for Bioware's decisions with ME and DA). And those guys are anything BUT small and independent.
Nah, this was a lose-lose scenario for Activision, so they just fell-back on a blanket policy. No fanmade remakes of owned IPs (especially ones where you don't need to pay any of your precious moneys). It sucks, but the alternative is to treat every case uniquely (which results in endless speculation on what is coming down the pipe or in development, which results in disappointment and anger when people misjudge the resolution of a fan-game).

Nah. They already had a non-commercial contract with them. That meant they had a fair bit of control.
Activision could even have worked out some kind of deal where the game carried free advertising for their products. The same way valve exploit their fan's creative energies to create word of mouth for TF2 or whatever.
There wasn't really anything for activision to lose, and if they played it smart there was a lot to gain. Heck, they could even set up a "fan projects" section of their website and milk the good will and publicity.

Unless the fan-remake sucked. Or, more likely, was faithful (which, for most people these days, would mean "sucked").
Free advertising? Look what happened when Far Cry was free with a bunch of McDonald's ads. People got annoyed.
And there is always something to lose: If they ever want to make their own game with the IP (unlikely, but whatever), there is the massive threat of "Well, these guys did better. And it was free", which will smack the crap out of sales. And even if it wasn't better, people will see "free", try it, get disappointed, and never try the completely unrelated remake :p
Milk up the publicity and good will? Didn't Infinity Ward actually donate to charity as a promo for people playing Modern Warfare 2? Didn't these very forums get angry and scream about how they are horrible people and shouldn't be doing that?
Yeah, Activision is going to benefit from trying to profit off of fanmade remakes of IPs that a lot of people probably already feel they shouldn't own...

The problem is that most customers don't have the fortitude that you and I obviously do.