Not a legal expert but from what I’ve read, the IP holders have the right to stop you in the event that you are “distributing”. Simply put, the second it runs on PCs other than the creators, that is when it becomes a legal problem.

Again we are talking legal not moral or correct. The point is the second someone makes it available for download, the IP holders have the right to sue, and have a very high chance of winning. Really the only variable is whether the IP holders notice the distsribution, and whether they choose to pursue legal action.

Pretty sure that’s not how copyright, and trademark works. I mean if he remade it with original characters etc… then he’d have a snowballs chance in hell, but far from a done deal (still would take enough money to have lawyers).