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Nintendo is suing the creators of Switch emulator Yuzu
(news.bloomberglaw.com)
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That's not really enough to be not in violation. For example, vlc can't natively decrypt blurays. This is because both its not bundled with the decryption library nor the decryption keys. Vlc out of the box can not decrypt blurays.
If yuzu can, if you provide some keys, eh that might be enough for them to win. It's certainly not enough to push nintendo away. You unfortunately need to be extremely careful around the dmca stuff.
You don't just need to provide keys, but an entire firmware dump. Yuzu contains no executable Switch code AFAIK
Not claiming it does. It seems like it might have the tooling to break copyright enforcement if you give it the right keys is the problem.
It really depends on the kind of encryption being used. I'm pretty sure if it's a common algorithm that logic does not stand.