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Nintendo pursuing Yuzu Forks on Github
(github.com)
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The paywall as far as I know isn't that much of problem. Cemu has/had a paywall for years. Several other, though less successful, emulators have had paywalled content/early access as well. The BLEEM emulator that was brought to court was a paid commercial product. So that currently is perfectly legal within the jurisdiction of those cases. Nintendo's case against Yuzu was about piracy/DRM circumvention. That wasn't brought to court, so we don't know the outcome however.