It's true, when it comes to user created content, the original developer is at least somewhat protected from legal issues created by the users. Games like little big planet would never exist without that protection.
Probably the best example of that happening recently was the baseball uniform conversion mod for fallout 4 that converted all of the uniforms in the game into Red Sox uniforms. MLB was pissed, but they targeted the modder, while Bethesda was free and clear.



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