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The users who are creating these covers are not profiting from it.
Generally speaking - music can be replicated and used providing it is non-profit.
There is some noteworthy justification, but it is still just a fuzzy mess as laws are still trying to catch up to protect everyone with a stake in an IP in this digital age.
Activision is wise not to go down that road, IMHO, at this time.
I wonder what they would do about a remix?
They just can't handle their things becoming popular because of regular people and not themselves.I guess they feel threatened that someone else is making their property popular.