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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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Im not a lawyer, but is this really good news? Isnt this just setting a precedent that Nintendo can shake down any emulator developer for ~2.4m any time they feel like it? So small developers are basically screwed?
It's good news in the sense that this won't be setting a new legal precedent surrounding emulation. Nintendo's case argued that the means by which cryptographic keys were obtained was in violation of the DMCA, which is an untested angle that could have dire legal ramifications for many other emulators if it were upheld in court.
On top of this, the Yuzu devs were a bit too brazen with their attitude towards piracy, and after consulting their lawyers they must have realized they have no legal ground to stand on. Any other emulator that runs a tighter ship in regard to copyrighted material (like most do) wouldn't be in such trouble. Nintendo wouldn't have a case with almost all other emulators, Yuzu in particular was giving them a lot to work with.
I think this is the best outcome that could currently happen. If they got a ruling it's very possible that Nintendo would win. That would probably cascade through the entire emulation scene and bring down countless other projects.
(Disclaimer: I'm not American and I'm not very knowledgeable in the American court system. Feel free to correct/inform me if I'm misunderstanding or missing information on this statement.)
Edit: just realized they had to take everything down aswell, that very much sucks.