What was the purpose of tamagotchis?
We may never know.
If you're a student using CryEngine you're probably not worth suing for copyright infringement (at worst a C&D maybe). If you're a corporate entity who is distributing a game which licenses CryEngine, you certainly may be worth suing for infringement.
There are restrictions on Serious Games, but amusingly a Serious Game isn't a game.
I'm thinking of things like Starfighters.
[0] 2.2. If you are a student or a member of an academic institution you are in addition entitled to develop Serious Games using CryEngine and to render such Serious Games in object code form (including the CryEngine Assets and the CryEngine Redistributables) pursuant to the CryEngine documentation. However, you are in no case entitled to commercially exploit such Serious Games without Crytek’s explicit prior written approval.
But we can breath a sigh of relief that whatever it was, we beat them in the end.