If they don't want people to play their games, who am I to argue? The article taught me people actually need Nintendo's permission to host a tournament. They might get C&D'd otherwise. What an insane world we live in. I can't fathom why anyone would ever C&D an event involving their own game and its enthusiastic fans.
Intellectual property shouldn't even exist in the first place, let alone be used to extort $50k from fans who are basically advertising their game for free, making it popular and driving a lot of sales. They're the ones who owe Nintendo nothing, yet they remained loyal despite this mistreatment.