Legitimacy in passing on grade, calling it a certain ryu name, etc.. definitely! That doesn't necessarily mean what's being taught isn't legitimate. Take Stephen Hayes for example, if he was taught kata by Hatsumi to a good level but not Menkyo Kaiden, and then passes on those kata they are still legitimate kata, only the grades, etc are questionable. I for example hold 3 Shoden Menkyo licenses, I'm authorised to teach the kata within these ryu up to that level, if I decided to leave my org does that my teaching less authentic?? I would only see a problem if I started handing out grades, or claiming to be teaching the whole ryu, etc... - Just noticed the some licenses bit of your post afhuss so my point about my shoden menkyo is moot, but still a valid point for people in the Buj for instance where they may have learned koryu kata but not received licenses.