"Mr. Peters understood from these discussions that as long as his works stayed non-commercial they would be tolerated, and that CBS would let him know if he had “gone too far.”
Doesn't this say, they've gone too far (sorry for the repeat quote, but it is valid):
“CBS has not authorized, sanctioned or licensed this project in any way, and this has been communicated to those involved,” a representative from the network told
TheWrap. “We continue to object to professional commercial ventures trading off our property rights and are considering further options to protect these rights.”
Sounds like they were put on notice to me.