You’re right, but I didn’t want to dive too deep with a throwaway internet comment. I’m using the word “profit” here loosely not to mean only dollars. The act of distribution can negatively affect the rights holder if the person violating the copyright/trademark dilutes, tarnishes, or misrepresents the rights holder’s IP.

I touched on this a tiny bit with my comment in there “or negatively affect the profits of the rights holder with your work using their name.”