Thanks for expressing your concern iGodz,
It is my understanding that the MERP project was shut down for three main reasons.
1. The MERP project used names it did not necessarily "Own." Middle Earth, Rivendell, The Shire (Tolkien fictional setting) etc. Warner Bros, having ownership of those names, was legally able to claim copyright infringement. (much as Tlaffoon pointed out) The reason for "Copyrighted names" to my understanding, is to prevent something called "Consumer confusion" In a more detailed example, if I had a certain gentleman in this mod named, say, Bilbo Baggins (Which I do not btw) and I had this fellow trip on his front doorstep one morning and paralyze himself. Those playing the mod might assume this actually happened to the real "Bilbo Baggins" and become confused when reading Tolkien's books, or Peter Jackson's movies as to why Bilbo isn't restricted to the local hospital. (A rather strange example, yes, but I believe it's understandable) Another reason for copyrighted names is so that money is not being made off of someone else's work. Of course the Merp project did not run into this issue as it was a non-profit.)
This mod does not use any such copyrighted names, most were made up by mixing fancy words from the dictionary, and bending them to sound slightly better. (Rather obvious if you've seen some of the odd names I came up with.)
2. Okay, so maybe this should be one-and-a-half. Bah. Not only did the MERP project use copyrighted names, but they claimed that they were, in fact, Tolkien's. In other words they claimed that the Middle Earth which they had developed was the same as the Middle earth that we all know and love from the books and films.
This mod does not claim to be affiliated in any way aside from inspiration with Tolkien's fictional world. We are our own little world, and we are entirely fine with that.
This mod team is also well aware that while we try our very best, we could never equal anything as good as Tolkien's Middle Earth.
(Even if that were our true objective.)
3. The Merp project was huge, and while they didn't plan n charging any money for the mod, they posed a serious competition threat. I believe Warner Brother was concerned that the Merp project might disturb sales of their current or future games. That people might purchase Skyrim and play merp instead of Shadows of Mordor, or Lotro. (I could be completely wrong in this theory, of course.)
This mod is far from the scale of the merp project, and will never be expanded or conjoined with other projects to span over all Middle Earth (Or Middle Nirn in my unique case.) If someone was truly stuck between purchasing Skyrim for my mod, or SoM for all of Middle Earth, I would be entirely surprised and very confused. This mod, no matter how fantastic I know it is, will never be an equal to any lotr official products. Buy the official product if you find yourself in said situation, that would be my best advice.
Now that I look over what I've typed I notice it may have come across as "Offensive" in the direction of the Merp project. This was not my intention at all. In some ways (a lot of ways) I wish the project still existed. But then again, so do all who live to see such times. What we must decide, is what to do with the time that we are given.
Hopefully that all makes sense. 
-TheBawb
Edited by TheBawb, 30 July 2015 - 08:19 AM.