Note that I don't think anything in the W3: reforged terms of service would prevent a new game being created based on a W3 mod, it would just prevent it from using the same name and art as the mod. This is exactly what happened to all other successful mods, with Dota2 being pretty much the sole exception.
Also, Riot mostly proved that you don't actually need the artwork or names to be massively successful - you just need to recognize a good idea and be the first to market with a polished implementation of it.
Had Blizzard owned DotA IP, I believe Valve would've had to steer much further away from the map, character and item design. IP extends beyond just art and naming, see e.g. Tetris vs Mino [1]. The case wouldn't have been a guaranteed win for Blizzard, but the early releases of Dota 2 were really closely copied from late releases of DotA, so the argument is there.
> Note that I don't think anything in the W3: reforged terms of service would prevent a new game being created based on a W3 mod, it would just prevent it from using the same name and art as the mod. This is exactly what happened to all other successful mods, with Dota2 being pretty much the sole exception.
Keyword being successful. Many maps have standalone ports that kept their predecessor's name [2][3][4][5], but only Dota 2 is really successful. And again, I believe these wouldn't exist or would've made large changes if Blizzard owned the IP of Warcraft 3 mods.
[1] https://arstechnica.com/gaming/2012/06/defining-tetris-how-c...
[2] https://store.steampowered.com/app/578350/Element_TD/
[3] https://store.steampowered.com/app/537680/Sheep_Tag_2/
[4] https://store.steampowered.com/app/469600/Legion_TD_2__Multi...
[5] https://store.steampowered.com/app/676580/NEO_Impossible_Bos...
Not to mention that Dota 2 also copied the exact skillsets of heroes and items. Not just likeness, but even most silly bugs that were due to the Warcraft engine.
Edit: Anyways, this is getting sidetracked. My point is that Warcraft 3 was lax with intellectual property for the longest time, and mods like DotA most certainly leveraged that.
Warcraft 3 (2002, 2003) was infamously lax on IP, leading to e.g. several big DotA clones that employed the modders (Dota2 for Icefrog, LoL for Guinsoo) and legal disputes on who owned which properties [1][2]. Blizzard revised their EULA in 2020 to prevent similar cases. [3]
[1] https://ttabvue.uspto.gov/ttabvue/v?pno=91202572&pty=OPP&eno...
[2] https://arstechnica.com/gaming/2017/05/does-valve-really-own...
[3] https://dotesports.com/general/news/warcraft-iii-reforgeds-u...