For those interested, it was Kabushiki Kaisha Square Enix who ordered the C&D letter to be issued. While I will not post the letter, it is interesting to see that the actual ramifications are "injunctive and monetary relief, namely, damages, statutory damages, lost profits, costs, and/or attorneys fees." Take that as you will...
That's interesting about the other team's project, though. They've also recently put a lot of hard work into their project...