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Yuzu developers agreed to pay $2.4 million in damages to Nintendo to settle their lawsuit
(storage.courtlistener.com)
this post was submitted on 04 Mar 2024
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The primary source for legal precedent is Sony vs Bleem.
Just like you told your girlfriend the other night, size doesn't matter
Bleem was a commercial product to emulate Sony Playstations that came out while the PS1 was still active.
As long as they aren't giving details on how to rip the games (which, funny enough, would be the dumper) they are in the same grey zone as system BIOSes and the like
There are other nintendo switch emulators. And emulators like RPCS3 very much were active while their target consoles were actively sold.
But look how it ended for Bleem.
The costs of fighting it are overwhelming enough that it can force you out of doing it.
The right and wrong of it doesn't seem to matter any more.