It's not that I believe it, it's that it's part of the DMCA. It's as illegal to distribute it as it is a plain ol copied thing. It's fine and dandy to modify something of your own and copy it to whatever you want. The only place I have made an argument to the contrary was for the NeoGeoCD emulator, and that wasn't a question of the legality of making files (iso+mp3) it was regarding the license that the author of the original emulator wrote which stipulated not distributing games and the emulator in the same media. I have nothing against copying your own things at all, and consider myself a "fair use" activist (I wrote my senior thesis on the subject).
The only thing that matters is that if something like that happens, it won't be right to answer questions on these forums that start like this "I downloaded blah game" because it's obvious piracy. Yes, it is just as easy for someone to say "I cant get blah game to run" but the latter of the two ways denies any explicit knowledge of illegal activity on our part, which is one of the reasons the Dreamcast homebrew/emulation scene is held in such high regard by sega. and yes, i know this is the psp section, but as long as it is on the same page, linked to and everything else, it needs to be held to the same standards, lest the dreamcast portion be tainted.
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