As far as I can see, that rule is aimed at modifications released here - I'm not aware of of anyone releasing a modification including any work by yourself.
We cannot be expected to police people who happen to find and copy stuff on your site, even if they happened to follow a link from here. It is a site owners responsibility to protect their work.
In the case of someone releasing copyrighted work here - the normal course of action would be to remove the modification and warn the member, banning anyone would be a last resort, not a first option.
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