Instead of getting rid of fanwork, Nintendo could have offered some of these teams help to port them on a Nintendo platform:
https://gamingreinvented.com/nintendoarticles/top-ten-nintendo-fanworks-cancelled-due-legal-complaints/
https://www.polygon.com/2017/5/6/15532448/fan-games-shut-down-by-nintendo-breath-of-the-nes-winterdrake