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I would add creation within an IP to this as well. There are so many good IP out there that some large company has devoured and actively chooses to just sit on when we could be getting good fan-made content. One example that comes to mind since it was brought up is EA sitting on American McGee’s Alice. So many fans are desperate for good content from their favourite IPs and are getting corporate by-the-numbers drivel at best or simply nothing.
I think a good trade off here is fans can make what they want then the owners are allowed to incorporate fan stories at their choosing so X fan game would be the official third game in a franchise then the IP owner could run with those ideas to make the fourth entry, for example. It’ll never happen but one can dream.
They know about the piracy and are actively removing copyrighted content. This has seen a lot of files going poof from its usage on pornographic forums and is now considered unreliable for such purposes. Not sure if this is going to spill over into other pirated content but I don’t see why it wouldn’t.