Yeah, I'm not sure what their reasoning was. Maybe they thought Epic abandoned the franchise and they wouldn't notice/care? Maybe they are sending a message of, "Hey Epic, we really want more Jazz and we'll do it without you," knowing perfectly well it would be taken down? Those are primarily my more flattering theories of course.

Either way, if they want to continue with what they have already built (I'm assuming they are lurking this thread) keep the tech, the levels, but create new characters, story, but make it feel like it's in the same universe. If the game ends up being good, then the same things that made fans out of the JJ games would make fans out of your game too.

I should also point out that most people's first projects, whether it's art, stories, video games, music, etc., are always going to be derivative. That's just how we learn. This project just happened to have been a little more extreme in that regard.