A "free educational event" at a library is not copyright infringement. And Warner almost certainly knows this, but was counting on the legal threats by the Big Bad Company to bully the small-town library anyway.
It's almost as if the C-level folks, with all their claimed experience and expertise in economics and business, ether forgot or ignore the basic demand curve from their Econ 101 classes.
I would very much yearn from Mike Dunford to be retained by ProPublica to reply, to wit: "Bring it on, bitch!"
They're only sorry because they were caught. I'm surprised the terms didn't claim perpetual copyright on any content created about the game. These POS TOSs typically try to grab everything imaginable as a default. Hell, I once had a section in an employment offer say that I grant the company a perpetual license to use my NIL.
The amount of ignorance and stupidity in just two sentences here is off the charts.