ahh I see. O BTW I realized I had a spelling error of "crout" where I meant "court", lol sorry. Well yeah alot of publishers do that, but that's if the project is bad or they don't like it and don't want it to be an annoying little stain on the franchise's shirt. And that may very well happen this time, but I personally have more faith in it then that. That's why a demo is being made. Make a good little demo to show off what it will be, show it to them, and either they like it or not. IF they say no, then production stops end of story and not too much time was wasted making a near complete game only to be shutdown. In the rare case that perhaps non-commercial rights are granted, then there's a working playable demo to kick off the mojority of the production of the game.
Sorry to burst your crout-happy bubble Joshi but there will be no lawsuit here. In order for a lawsuit to hold water then they need to prove damages, then they can only sue for that amount. If this demo (not even a complete game) has caused fanancial damage to lucas arts meaning if it has and will draw customers and therefor money earned away from lucas arts using their copyright then by all means show me here now. But the idea of a lawsuit is utterly non-existant. This project is not commercial or generating money for the creator(s) (so technically not even infringing upon international copyright laws) nor is it even drawing people away from any lucasarts games to play this instead (as there's no project to play yet). The worst that can happen is that Lucas Arts does not grant rights and simply shuts down production, simple as that. All that we are looking for is a simple allowance of use for non-commercial purposes (which is the intent, to release the game for free without legal issues with lucas arts). My guess is that the odds of them allowing it are actually pretty high because they have nothing to loose, and in fact the game could generate more interest for the lucasarts games meaning more money. And hey who knows they may want to buy the demo, hire some staff, and continue the project on their own.... doubtful yes but honestly far more likely than a lawsuit. they can't and won't sue.