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Yuzu developers agreed to pay $2.4 million in damages to Nintendo to settle their lawsuit
(storage.courtlistener.com)
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They were not actively enabling piracy at all. Piracy discussion was banned on all their platforms as well as any information on how to get software title keys illegally. They did everything right and were still bullied out of 2.4 million
I don't think it would been won in court by Nintendo, but it was a big risk for them which accepting this causes them 0 issues, they only lose whatever the company had and no repercussion to them personally. Of course they lost their jobs...
Just because it wasn't being actively discussed doesn't mean that piracy wasn't an intended use of the software.
It's like the argument of, "this bong on my car's floorboard is definitely for tobacco, officer."
Yeah, bongs can be used for tobacco, but that's definitely not their main use case. Same with emulators.
By that logic all emulators in existence are piracy tools. In which case how brazen or not they are is irrelevant.