"But, when it transitions to something that... now, you're trying to monetize, you're trying to sell, you're trying to profit off of, that is what broaches or breaks through that line for us, where we have to claim our IP protection. [...] when something transitions to a commercial product, and that's what [AM2R] was—there wasn't a charge, but it was now a commercial product."
To me it's like he was scared that the game was good enough to become a commercial product after its been released.. which is weird and doesn't make much sense.
It's more that the game was good enough to become as popular as the other games of the series. Nintendo has improved over the years but they're still very annoying to content creators and fans creations of their games. (also to those sharing content such as a soundtracks)