Dev says project is "in a legal gray area we are trying to work our way out of..."
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The monetisation part wasn’t what fucked them over, it was merely what made their more illicit activities worse.

The Yuzu team were using leaks to tweak their code, namely the ToTK leak.

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IP law is at it’s core about monetization and developer compensation. The legality of emulation absolutely hinges on whether or not the alleged infringement is monetized.

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The legality of emulation absolutely hinges on whether or not the alleged infringement is monetized.

You are absolutely mistaken. See Sony’s lawsuits against Connectix and Bleem!, which were both commercial products, and Sony lost every lawsuit they filed against them.

I don’t know where you and the other thousands of people parroting this online are getting this from, but it is not true and never has been.

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Nope. There have been monetised emulators before that have been deemed legal (see Bleem!)

Also if you break copyright law, the rights holder can come after you regardless if you are making money or not.

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The legality of emulation absolutely hinges on whether or not the alleged infringement is monetized.

Sony lost all of their suits against Bleem!, sorry but it’s not illegal to monetize an emulator. The rampant piracy they were engaging in and essentially promoting is what fucked them. Including using leaks to test their emulator against and patch issues with games that hadn’t been released yet. There’s been talk that they also had a ROM stash on their discord.

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