1) Since the theatre was closing, they probably feared no reprimands or boycotts from Lucasfilm.

2)Since the screening was free of charge, I'm not sure they are actually clearly breaking any laws. The owner of the print can be fined or prosecuted, but for all we know he may have actually obtained the print legitimately, as this happened from time to time way back when.

3)Lucasfilm may act like Big Brother, but in the end the people that actually police this stuff are probably only in the amount of dozens, so if something like this happens without much advertising it tends to fly below the radar. We didn't hear about it--and we hear about things long before Lucasfilm does!

4)Since it was a one-time screening to a theatre that no longer exists as a business, done as a free community event, I doubt Lucasfilm cares to act on it. It would just make them look bad.

However, someone raised a good point. This print didn't self-destruct when the theatre closed its doors. Somewhere, possibly in Baltimore, that beautiful print is sitting in some cans RIGHT NOW. I doubt they will simply let random internet fans have access to it, due to the legal trouble. If anyone knows the organizers or former-owners, they might be able to convince them to...do something with it. Any leads?