I think it’s totally fine for him to do that if he pleases (and it’s totally fine for people to break his security checks and use it themselves). Some people choose to spend their time & work to break the security rather than pay. I mean, would you donate money for his time & work if he gave you the option?

This reminds me strongly of SecondLife, where just about everything that can be done in-game can be set up as proprietary. It’s built into the interface.

You can still have a community in which items/scripts/what-have-you must be bought rather than shared. The obvious alternative, just as in real life, is to build your own (and share it)! Luckily, it’s far easier to “build your own” in the virtual world.