selling ni stuff for real money

[Malong]

What is he doing? Making money from an item he didn't create nor has rights profit from, do I have to explain this?

When purchasing warband you buy the right to play a copy of the base game and access to mods, as well as being allowed to modify the game for nonprofit use, not the right to make money in any way from this game.

I guess you missed the first two sentences, so I'll bold them for you:

He's not selling "the item" as created by the contributors of the game... You would be selling an instance of the item(s) created, access to the instances of the item(s) for your account within the game.

What right does one have to sell access to instances of this item created when it's used within warband, where no one but Taleworlds can make money from as it is within its game.

The right is being granted by the revocation of this rule.