With Siege of Dragonspear it was the same with the German translation. It took years and was bad because no native speakers were hired. A German volunteer team released a language patch and asked Beamdog to use it. Beamdog refused because they were two-track and the other team was probably close to completion. But the patch was still made freely available in relevant German forums because it was also the better and more immersion-logical translation. I think it's just like benbaxter says, as long as the translation is not offered for money, it's like any mod, a freely provided extension. Of course, if in doubt, you can just ask Larian if they have anything against it?