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Any reason given? Not that they have to give one, it's still their property to do what they want with it. I would keep an eye on them and if they somehow in the future come out with something very similar, I hope there are good records of the past years of work and discussion. Since it was going to be free and not for profit, not really a case for lost income, but there must be some laws to protect people working in good faith with a trademark knowingly who get their ideas stolen FOR profit. If that happens.
No reasons given. And up until the cease and desist, the team working on the project was in good standing with LEGO.
Keep in mind, there currently isn't any existing LEGO Bionicle theme. No official merchandise is being sold. There exist literally not a single official ongoing Bionicle project from LEGO (as far as the public is aware). And it has been like that since the cancellation of Bionicle G2 back in 2015.
That's even more why it feels like someone new in the company stepping in and questioning why there isn't something in play officially if there's interest in freeware/open source. Someone who talked to the lawyers first to make sure no right were signed away yet. That may be very pessimistic and conspiratorial, but if there isn't any reason to stop someone else's work on something, why would they send one? I don't know a lot about copyrights and trademarks, but I do think there is a point where if you aren't using an asset and others are interested, you shouldn't be able to just hold it under lock and key and do nothing with it. I think patents are like that, you have like 20 years or something protected to do something, and then it's open(?) Again, I'm not sure.
Yeah, there has been some idea floating about that this might be in advant of a new Bionicle reboot. A G3.
But the way LEGO is treating its fans has killed any anticipation I have for a new Bionicle line. If there does end up coming a Bionicle G3, then it's only because we are here. It's because of us that LEGO might even consider trying Bionicle again is financially viable. If this is the way LEGO thanks its fans for keeping it alive, then to put it mildly; they can go fuck themselves.
Anyway, between 2014 and 2015 LEGO already tried to reboot Bionicle, and failed miserably at it. LEGO seems to have forgotten what exactly made Bionicle so succesful, and now considers the original success as a fluke. As lightning in a bottle. Truth is that there was a lot of passion behind Bionicle, something that G2 and any potential G3 will be missing.