Times are different now though. In the earlier days of simracing, you could probably get away with a lot just by virtue of the legal paperwork not crossing over into the virtual world and simply the name alone was all that was covered but not the virtual "likeness".
And to add to what others have said, nobody is saying that all mods are rips but the vast majority are. And rather than giving VOLUNTEERS headaches when they come home from a hard days work, people are brainstorming a way to make it easier on those giving their time for free.