So for a start not being compliant with a license is not the same as something being illegal. Then I'm not sure whether the last sentence is tied to the rest of the clause if it relates to usage of the model in violation of the license. I'm not sure if v1 and v2 are considered the same model or not. Arguable either way.

It does add risks for a company sure.

edit - thanks for adding that in, it's an important part of the picture.