I think Xortex is trying to make the case that these fan productions aren't doing anything to compete with Paramount's product, but instead complement it. Certainly it's Paramount's
right to discourage anyone else from making a profit on their trademark, but some might argue that that isn't the smartest choice.
In a perfect world, I'd like to see Paramount try to nurture these fan-based productions and let them earn a profit in exchange for a fair percentage.