oh, I see sorry to bother then, I had heard of people getting away with this sort of thing before by being not for profit. but I guess if the NCSoft owned characters are used that is the main issue. Unless paragon owns the character rights? then technically NCSoft would only own the code.
Fair Use protects you/us in cases of satire, parody or other journalistic and historical uses (such as reviews). It doesn't protect you from, effectively, creating a competing product, regardless of if you make profit or not on it.
Fair Use is there to protect our free speech to make fun of or negatively review a product in a way a company would otherwise (without this law protecting us) shut down (though that hasn't stopped companies from trying to shut down negative press with copywrite lawsuits, in either case). But, on the other hand it doesn't give us any legal license to pirate the game (even if in a very round-about way).
There has been several cases where a company has turned a 'blind eye' to this sort of thing (Mother 3's translation project comes to mind, NoA's staff just sorta smiled and winked knowingly in Tomato's direction), but that's exactly what it is: turning a blind eye towards the issue.
There's a good reason to assume NCSoft will not be so... generous... with their property.
Before we jump on the 'let's protect it for historical reasons!' bandwagon, I'm pretty sure you need the proper fancy pants and fancy hats to be qualified to make that claim, which the most of us (probably) don't have.
I'm pretty sure the case is that Paragon Studios owns about nothing here. Cryptic owned the engine, but they've leased it indefinitely to NCSoft, and I'm sure they'd probably lease it similarly to a new company (though maybe not? But that wouldn't stop a CoH2 from happening, either way). NCSoft though owns the IP (the actual 'setting' and all that), or we wouldn't be trying to buy it from them.
If Paragon Studios already owned the IP, we wouldn't be facing a shutdown at all, because Paragon Studios thought the game was doing great (and in fact was rolling out updates to it right up until the bell tolled).