Yeah, but it also works in our favour. We just push the download to a different continent and tell them to sue the next person instead. And since our work is so good, some big gaming house will buy us anyway
(That last sentence was an Official Tels' Joke™)
Apart from the part about being bought out, it's actually a very good point. Contrary to popular belief, getting a letter from a corporation is not the end of the world and does not mean that the mod has been "shut down", all it means is that some corporation (or possibly an individual within that corporation) didn't like what you were doing and thought they would try it on by using intimidation.
Once you call their bluff, indicate that you are not in fact infringing their IP and invite them to stick their intimidation where the sun don't shine, they are then in the position of having to decide whether to embark on the expensive, time-consuming and potentially dangerous (in terms of reputation and setting unwanted precedents) course of taking actual legal action, which is made even more difficult by the fact that an international project can switch host countries at the drop of a hat.