No one is profiting or losing anything over it, so it really doesn't affect the beancounters. Just because a car/track is modded into a game, does that mean people will stop buying other games that have that car/track? I don't think so, at least not for a majority of people.
Whereas if you imagine AC released without modding, it probably wouldn't have lasted this long and Kunos would probably lose more revenue than it gains from the extra ACC sales.
Basically your above statements totally contradict themselves, your first statement says "No one is profiting or losing anything over it, so it really doesn't affect the beancounters" while your second statement says "if you imagine AC released without modding, it probably wouldn't have lasted this long and Kunos would probably lose more revenue than it gains from the extra ACC sales."
You cannot have it both ways and even you say Kunos is more than likely profiting on the extended sales life of AC due to mods which I fully agree with.
The car/track companies doesn't really care, because the game companies pay the licensing fee up front. Whatever happens after that, is not their problem anymore. It's impossible to police anyway.
This is where your line of thinking in my opinion goes totally off the rails.
If you think that the car/track companies do not care about protecting their brand/product rights and exclusivity you are mistaken. The fact that the game companies pay up front is irrelevant as that very word EXCLUSIVE has a big influence in driving the pricing for future contracts as well.
Example Polyphony is interested in purchasing a license for exclusive rights to Laguna Seca which license covers the next 3 years for that exclusive use.
But yet due to modding it is well known that Laguna Seca will also find its way as downloaded content in AC a competing game title as well. Now do you really think that the value of that "EXCLUSIVE" rights contract has not taken a hit and Laguna Seca will not lose value and income due to not being able to control the full rights to the use of their name and likeness of their venue? Do you not think Polyphony will not offer a smaller dollar amount for the license fee to that content because it really is not exclusive due to mods allowing the content in a competing game title?
How do you go after every single person who have downloaded the mods?
You do not need to, only the company or site owner that is allowing their site to allow to share such illegal downloads or the company that is willingly allowing the illegal copyrighted material to be inserted or used within their product. Still not a great solution but the best realistically available. Many examples of such legal precedents have already been established within the music industry as artist have been fighting for ages to protect their content from illegal download and use which denies them the legal rightful compensation for the use of their legally owned and protected content from illegal download and even possession of their material.
Like this guy who rips tracks from Forza, but he doesn't share them publicly online, he only used it for himself. Is that breaking the law?
Yes, he is still STEALING copyrighted material period! There is no grey area here, he either has legal rights to the material or he does not, how he plans to use such stolen material has no bearing one way or the other. No difference than illegally downloading music. If you do so you are a thief just what you stole is in a digital format rather than a physical format. If that person wants access to those tracks in a game then he should purchase Forza and use those tracks within that game.
Some modding groups release paid mods that look exactly the same, except all branding and names are removed. Is that violating rules? Is that better than releasing a free mod that has all the names and branding intact?
No different if the mod is actually using the original copyright protected released files to be created. No different than any other copied product where rights and patents of an original product are ignored or stolen.
Even with Disney characters, I've been to third world countries where people sell shirts and merchandise with Mickey and stuff on them by the side of the street. I doubt they got licensing permission but even so Disney isn't going to start prosecuting them because there's no financial gain going after these people.
First world or Third world really makes no difference it is just as illegal in one as the other. You though seem to weigh the risk by the amount of probability of a person or company being prosecuted for committing the illegal act rather than acknowledging that committing the act is wrong and should not be acceptable behavior period.
So you see, it's really not a clear black and white situation with modding
As long as it's not expressly forbidden, I'm going to still enjoy mods. I hope you can relax a bit and enjoy it too because it really is a game changer
I enjoy some mods within some games but the mods I enjoy usually are adjustments to make gameplay more balanced or add features to the content already in a game.
I actually use some add on mods that are original created content created to add certain more advanced features to a game that originally was not part of the game but the key there is original created not stolen or pirated material.
Like I said I have my moral compass to satisfy first and I have no interest in using content that is likely illegal or stolen regardless of whether I could or would ever be prosecuted for having or using that content.
As gamers if you want even the legal modding content to continue then we need to police ourselves and frown upon the inclusion of illegally obtained content to be used as part of those mods.
If you think that government oversight and legislation cannot be created that can hold the original studio of a game that has an open code that willingly allows mods to be added to their original game cannot be held liable for damages to the holder of that stolen original content then you are fooling yourself. It is possible if that were to occur that all game studios to protect themselves will lock their programming code down to a point where adding ANY mods would be virtually impossible.
If you enjoy using pirated and stolen material that is on you and what you find acceptable but not for me. I will continue to enjoy mods which contents I feel are of a legal nature only but again we each have our own measurement of where that line is we consider to be right or wrong.