Nintendo is suing Tropic Haze, the creator of the Yuzu Switch emulator for home computer and Android.
The lawsuit in question is pretty sneaky, dealing not with emulation itself, but with the way Yuzu allows users to circumvent Nintendo's copy protection. Never mind whether Yuzu has other, legal uses, the fact that the emulator can potentially be used for piracy is enough for Nintendo to label it "unlawful".
The word "unlawful", though, doesn't strictly mean the same as "illegal". Something which is illegal is against the law, while something which is unlawful is not strictly against the law because there is no law preventing it.
Nintendo's lawsuit takes advantage of one of the Digital Millennium Copyright Act's most controversial passages, which bans the circumvention of copy protection even in circumstances where making a copy is legal. It's effectively a loophole - one that successive lawmakers have attempted to close, to no avail, and one which coincidentally serves the needs of big business copyright holders very well.
Thus, Nintendo is arguing that Yuzu can potentially be used for something which might be construed as against the law (although the law is not clearly defined enough to prove this) while using a contested legal hiccup that by all rights, shouldn't still be on the books.
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Emulated homebrew games shown in this video (in order):
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Nintendo's "Unlawful" Emulator Lawsuit
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