Hi,
I heard about this situation through the game music community and had to register to say that I completely support the project. I will not be buying a game from Square Enix again. Their behavior with this issue was appalling, and their games are so buggy that they are unplayable. I sold my copy of Star Ocean: The Last Hope because the game is unplayable. There is a showstopping bug that crashed every time I beat a boss necessary to progress the story. What kind of incompetent people does this company hire that they can't resolve a fully reproducible bug and that they would shut down a fan project that would provide lots of free exposure for their own upcoming Chrono Trigger releases?
First, I read through this thread and I noticed a few inconsistencies with what's being said here. As far as I can tell, the game code has been "destroyed." Even if it wasn't really destroyed and actually is archived somewhere, any "negotiation" with Square would be an admission of guilt, because the game's code no longer officially exists. There is no way that this project will ever see the light of day again even if both sides want it to go on, because someone would have to admit guilt.
On the other hand, while I won't be buying Square games anymore, I disagree that the author is "risking his life" over the project. First, this is likely a civil and not a criminal matter, so only money is at stake, not anybody's life or even jail time. Second, if the code still "existed," taking the case to court, no matter the outcome, would have risen the profile of the project so high that either outcome would be very negative to Square, just like Microsoft backed down after refusing a refund for an academic copy of Windows. I'm sorry to say that I do think this is an act of cowardice, even though everyone says it isn't. Whoever wrote the first line of code should have decided to either follow the project through to the end, or to not start at all.
Finally, why didn't anyone think of offering to sell the game to Square when the letter was received? They might have been willing to pay a hefty sum for all that work. Everyone would have won - the company gets a great game to put out on the virtual consoles, the contributors make money, and the game gets lots of players.
-Steve
http://www.remixsite.org/