>>39262192I don't think it's considered "fine" by any means. I think it's just that Nintendo keeps taking down fangames by people because they're smaller companies and can't even defend themselves properly without the defendant losing in some kind of regard.
A company filing DMCAs with other companies is a something that isn't wanted, because they both realistically can take each other to courts of laws and actually win/lose against one another. They just don't do it because in the end it's a severe waste of time for both of them that they could be using said time for other things.
I think companies just somewhat parody other companies names to both keep them 100% safe and so they don't have to deal with the drama in the future.