Microsoft lawyer Don McGowan is aware of the faux Master Chief that was created with Unreal mod software, but rather than feel threatened, he considers it a tacit endorsement of both Halo and the Xbox 360.
"[M]uch though I love my friends at Epic, Unreal Tournament isn't Halo. This will also remind people of just how great the Halo games are and remind them that if they're done with the user-created faux-Halo experience, the real Halo is available only on the Xbox 360. And no one is taking characters from PlayStation games (do they even have any games?) and putting them on our platform...," McGowan wrote in a post on his blog.
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