This specifically happened because the guy put a financial bounty on a multiplayer mod for Breath of the Wild.
Nintendo has always been fairly straightforward on this sorta thing if you look at their actions:
1. Don't make them care. Don't draw attention to yourself, just do what you want to do. Relatedly, don't talk to Vice, Polygon, Kotaku or any other authoritative source because then you'll be competing with Nintendo in the press for relevance, and that'll make them upset.
2. No piracy. Nintendo has a very wide definition of piracy, which includes emulation if it has the possibility of being done through piracy (which is most emulation but not most emulation development). Specifically don't do anything that can directly enable piracy, such as dumping ROMs or say... trying to organize a Melee tournament using a Dolphin netplay mod.
3. No money. Money makes things complicated and will make Nintendo care. Just straight up - you're going to need to do it pro bono. If you expect financial benefits of any kind, just go elsewhere.
4. Don't directly compete with Nintendo - no direct sequels or remakes.
Otherwise they'll turn a blind eye. This guy violated point 1 and point 3; tech blogs wrote about him and he put up a financial bounty for it.
Nintendo has a history of getting videos taken down and entire channels suspended that didn't even violate any of those actions you described.
> Specifically don't do anything that can directly enable piracy, such as dumping ROMs or say... trying to organize a Melee tournament using a Dolphin netplay mod.
No offense meant towards you specifically, but if that's Nintendo's mindset then that's complete crap. ROM dumping is not a crime or YouTube content violation, nor is using one for a network tournament.
Imagine a book publisher shutting down a book club on YouTube for discussing their books and sharing excerpts. Most reasonable people would find that absurd even if the law or any user agreement supported the publisher.
I completely agree with you, it is completely absurd what Nintendo is doing.
Unfortunately, Nintendo does not care what you think, does not care how this hurts their image, and does not care what damage this causes to the emulated longevity of their games lasting longer than the hardware they sell currently.
It is in their financial interests to force everyone to always pay for and buy Nintendo hardware to perpetually keep having to upgrade and purchase new copies of their software from their online stores to keep playing old games.
This is how they do business and by having articles, news, and social media posts constantly crying about how Nintendo did them wrong, it helps ensure that the average person keeps toeing the Nintendo line instead of exploring emulation. If a non-tech savvy person hears "Nintendo sued a guy for using emulation on his game meetup" they'll think, "eh, I think I'll just buy a Switch and not bother with emulation" when they want to play Yoshi's Island because nostalgia hit them in the feels.
This whole thing is a song and dance to keep people buying real Nintendo hardware (or choosing to use already owned Nintendo hardware) to play games they could just emulate with a few quick downloads. It's why you see "Top 5 retro games you can buy on Nintendo eShop before it's gone" articles on Polygon and elsewhere every year. It's a whole schtick to get you to keep handing Nintendo money for a game you've likely already bought and paid for at least once in your life.
Once again, I don't agree with Nintendo's stance, but boy oh boy is it ever profitable for them.
Sure, I'm not suggesting that what Nintendo is doing isn't in their own best interest, given how most gamers will continue to just buy more Nintendo products.
I'm in a minority where Nintendo's actions, on top of a selection of games that I find pretty lackluster, have caused me to give up on them and refuse them another shiny nickel. Attacking fans, IMO, is a no-no. Attacking the abandonware community is especially unacceptable. One can enjoy their games, but I don't get why people defend their being so draconian, given that any loss of revenue they claim over things like game walkthroughs is dubious, to say the least.
Yeah, I'm totally with you. Which is why I wrote a lengthy bit. I didn't feel like you were saying that these practices aren't in Nintendo's financial interests. I merely tacked my explanation on so that if others come through and read it, maybe they'll learn something about how negative Nintendo is towards their community.
I feel like a lot of folks are kind of ignorant to what Nintendo is doing. I don't like these draconian practices, so I try and inform others of the BS as much as I can in hopes that more people will become vocal and stop silently supporting it.
Hearing you say this warms my heart. Thanks for voting with your wallet!
It might be worth noting that the Switch is still selling better than the Xbox, so they're technically #2:
Total PS4 and PS5 sales: 149.7 million
Total Switch sales: 122.3 million
Total Xbox One + Xbox One X Sales: 70.5 million
When you pair that with the fact the Switch has sold over 900 million in game sales... well, unfortunately, Nintendo has a long way to fall before they have to wake up and change their tact.
The Switch is the 3rd best selling console of all time, ahead of the PS4 by approx. 5 million units despite coming out 4 years after the release of the PS4. They may be #3 in terms of mindshare, but they have an incredibly dedicated fanbase that enjoy their products in spite of their behaviors towards them on the content creation side.
They are around since 1889 under just 6 CEOs, including the interim after the loss of the 4th. They care much more about holding a little family celebration at the next centennials than shooting for T2D3 and going Chapter 11 as soon as possible, which by the way SIE is on track for.
Not a crime as such, but how does one dump a ROM without making copy, and how does one get the right to make copies if Nintendo won't license you the content? It's fine to make an policy argument about the the law aught to be, but you can't just ignore what it is.
It's permissible to create a copy for personal use, so long as you don't distribute the copy. Copyright is primarily about distribution of copies, not the making of copies themselves.
Right but that's a small fig leaf for the people who get sued over this who very much are going beyond personal use. Circling back to it's fine to make a policy argument but dumb to flout the law.
No, copyright law is about the exclusive right to make copies, among other rights. In US law this is 17 USC 106.
The reason making a single copy for personal use is generally considered permissible is because: (1) it may be fair use under 17 USC 107, (2) the copyright owner will probably never find out, and (3) even if the copyright owner found out it probably won’t sue over one copy.
No, but usually the physical media (DVD / BluRay / Cartridge) does. The issue comes in how do you legally create the Rom without bypassing copy protections.
Sorry but I believe you have the misconception, at least under US copyright law. There's some extra penalties for commercial use, but there is no general fair use exception for non-commercial use (as apposed to say educational use, which does have a general exception). Feel free to cite a statute or caselaw if I'm wrong.
Copyright is about DISTRIBUTION to others. If you never distribute a copyrighted work to another person there is zero violation of copyright
This is why I am not aware of anyone ever being sue or otherwise held to account for DOWNLOADING copyrighted works. They always Sue over DISTRIBUTION. BitTorrent got the tag of "Sued for downloading" but in reality people were sued for seeding, ie distributing. I am not aware of any leecher that was sued.
Similar of Usenet, Uploaders, and usenet providers get sued, but downloaders?
The entire point of copyright is about preventing unauthorized distribution,
Subject to sections 107 through 122, the owner of copyright under this title has the exclusive rights to do and to authorize any of the following:
(1) to reproduce the copyrighted work in copies or phonorecords;
>This is why I am not aware of anyone ever being sue or otherwise held to account for DOWNLOADING copyrighted works. They always Sue over DISTRIBUTION.
So you must have missed all the filesharing lawsuits over the last 25 years. Lots of people got sued for just downloading, not seeding, just downloading.
I followed them very closely, 99% of them were bit torrent and misreported in the media as "downloading" when in fact if you read the actual cases it was the distribution / uploading that was the bases of the case
Another content creator is getting takedown requests for vanilla gameplay [0]. PointCrow also mentions takedown requests for other videos that have nothing to do with the modded multiplayer video. Nintendo has terms for this type of content, allowing usage that they're now issuing takedown requests for [1].
Maybe the bounty for the mod, or maybe it's just mods in general, that got Nintendo's attention but they're trampling over the creators other work, which looks like a bullying tactic.
It would be nice for nintendo to actually come out and SAY what they have a problem with instead of this kabuki theater of trying to find commonalities between a bunch of takedowns. However they aren't answering pointcrows emails to their legal department.
You basically have no rights under modern copyright law. Derivative content is extremely restricted and pretty much arbitrarily controlled by the copyright owner. This is by design.
If you want to change that, don't complain to Nintendo, complain to your representatives who made the system that way to begin with. Nintendo has the rights at the moment, while you, the consumer, don't.
So could Ford stop me from using footage of a Mustang? Vehicle design and logos are copyrighted. What about a movie wear characters are wearing designer clothing? Those are covered by copyright as well.
> So could Ford stop me from using footage of a Mustang? Vehicle design and logos are copyrighted. What about a movie wear characters are wearing designer clothing? Those are covered by copyright as well.
You may notice how when cars are used in commercials they generally have their logos removed. Likewise when someone wears a shirt with a designer logo or graphic design on TV it'll often be blurred. The line is fuzzy but at least the professional media production world seems to have agreed it's somewhere around there.
This is a somewhat disingenuous statement. If you go back in time you will notice that was not the case, Then Studios got the bright idea of "product placement" so if a brand wanted to be in a show they need to pay for it, if not they would remove the logos.
In some limited circumstances a company might be able to sue over the use copyright in another work but for the most part fair use would protect them.
The reason they remove the logos today is primarily to extort money from brands not fear over copyright
There is actually some case law about this. The car Elenore from gone in 60 seconds has its rights held by some organization that was going around suing people.
Some US district court ruled that cars could not be copyrighted (although this did reverse a previous decision).
I think the major distinction is that the car isn't actually a character in the film (and the previous decision was because the rights holders disingenuously indicated that the car was a character in the movie and the court didn't double check that this was in fact the case iirc).
> In some limited circumstances a company might be able to sue over the use copyright in another work but for the most part fair use would protect them.
Incorrect, or at the very least studios disagree with you, as they act as if the opposite is true. I'm going to trust their (and their lawyers') judgement over that of yours.
There is no indication in that link, or any other links I have read on the topic that Apple is doing this via copyright.
Apple could be paying studio's to keep the products away from villain, Apple could be supplying devices or other services for free as a condition if they agree to those terms, Apple itself is a production company so directors and other people in the industry could be voluntary agreeing to it for their own professional reasons...
I have not read a single legal expert that claims Apple could successfully sue a studio for copyright or even trademark infringement if a bad guy was using an iPhone in a movie.
Very common misconception. There is no law in the US that says that you're not allowed to make money off of other people's stuff, and there are plenty of rights in the US that as a side-effect happen to protect your ability to make money off of other people's stuff. Some of those rights are even embedded within copyright law. Parody allows you to make money off of other people's stuff without their permission.
I really object to the phrasing of copyright law as "you don't have a right to make money off of other people." That's turning copyright law into something much, much broader than it actually is.
I get that this might seem like a trivial or nitpicky distinction, but if you're familiar with Doctorow's writings around concepts like "felony contempt of business model", there is (I believe) an uncoordinated but persistent effort towards rephrasing copyright as if its purpose is to enshrine some fundamental right for a business to make money and to control who can make money around them. And it's a really insidious expansion of what copyright actually protects.
If people aren't violating an actual copyright (which, we can debate if lets plays do), they are in fact allowed to make money off of your stuff, and the fact that your stuff enabled them to make money does not automatically obligate them to compensate you. Not everything that allows someone to profit off of another person's business is a copyright violation.
Yes you do. You are allowed to resell a copyrighted book. You can pillage public-domain works to your heart's content. You can use open-source software commercially.
This is a contentious statement - the large datasets used to train all the new generative AI projects are comprised, at an individual level, of "other people's stuff".
Copyright, trademark, IP in general, there's a 9.0 magnitude earthquake coming.
This seems very Stockholmy. $BIGCORP is interpreting law beyond what is actually says and is using the automated systems of $MONOPOLYCORP to make life harder for this one person for doing things well within their rights because he decided to ask for clarification and to talk.
Maybe we should just lie back and think of the mushroom kingdom?
You cannot draw a consistent line or set of rules for the actions of a company as big as nintendo, consisting of many departments, subsidiaries, and individual disgruntled lawyers who may or may not feel like picking a fight on any particular moment.
Within the pokemon romhack community, people have tried figuring out a similar set of "unofficial guidelines", that generally reflect your list to a T. However, there's enough examples of "random" takedowns[1] and I know at least one person who got a seemingly random C&D for an unpublished romhack, whose takedown never reached the public ear. I'm sure there's many similar cases.
> know at least one person who got a seemingly random C&D for an unpublished romhack
The list is good advice for staying off any company's IP protection radar, but "random" takedowns are often tip-offs from an aggrieved community member, competitor, or bitter ex.
These creators are almost always benefitting from Nintendo voluntarily turning a blind eye to the creator’s use/sampling of Nintendo IP in their content without any kind of IP licensing agreement. Whether some behavior is legal or not, if Nintendo doesn’t like it, they are free to respond by taking issue with the actually-illegal thing you’re doing (using their IP without licensing it.) A.k.a. “If you don’t want to play by my rules, I’m taking my ball with me when I go home.”
(Keep in mind that by a strict interpretation of IP law, everyone making gameplay videos of Nintendo’s games owes Nintendo royalties on revenue from those videos, just as much as musicians that sample other artists’ music owe those musicians royalties on revenue from that music.)
Indeed, that's another subject but I'm in favor of removing those rights as well so they have no power anymore on this aspect either, selective enforcement is just another way to substitute yourself to a legal power.
Right, so you armchair lawyer about how you have all these rights, but when it’s pointed out you don’t actually have them you’re just in favor of having those rights.
Nintendo spends a lot of money creating that content and we like that. That’s why we have created a framework that allows them to make money out of that investment. We limit your right to do whatever you want so they can make money.
> Right, so you armchair lawyer about how you have all these rights, but when it’s pointed out you don’t actually have them you’re just in favor of having those rights.
No I was talking first about the rights to emulation, romhacks and mods.
Those are perfectly legal right now, there's no ambiguity, whatever Nintendo thinks on this subject doesn't matter and their opinion doesn't have any value.
> Nintendo spends a lot of money creating that content and we like that. That’s why we have created a framework that allows them to make money out of that investment. We limit your right to do whatever you want so they can make money.
I'm sure Nintendo is doing fine financially selling those games, you don't need to worry about that.
Well, then you have nothing to fear, just ignore Nintendos supposedly empty threats and see how well your arguments do in the courtroom. Be sure to tell the judge not to worry about Nintendos financial situation and that you think they are making enough!
There's always fights against those large bully companies to apply your rights going on, everybody is impacted one way or another. Even if you don't care about your rights, somebody always does and helps the overall community.
What's better, armchair lawyers arguing for the common good or armchair lawyers arguing to leave all their rights to a megacorp to essentially not hurt the megacorp feelings?
You are getting quite delusional. You do not possess the monopoly on deciding what is ‘the common good’. And once you see that you might also see why your armchair lawyering looks so ridiculous. Just rehashing some shallow, obvious and tired ideas that don’t work in the real world, have never went anywhere and will never go anywhere doesn’t actually improve the world.
I see the gaming industry has succeeded in portraying someone making videos about their game as "use of their IP" and something they have a right to control?
Is making a video about sneakers "use of Nike's IP"?
What if they've been dyed to be the same color as a much more expensive limited edition?
Is making a video about driving a Corvette through some picturesque mountain roads "use of Chevy's IP"?
What if that Corvette has a custom supercharger kit, installed at a fraction of the cost of a factory-supercharged Corvette?
A video about X isn’t the same thing as a video where the majority of the footage is sampled directly from X (where X is a digital good experienced through watching it on a screen) such that it could be construed to be a valid replacement for buying X for some buyers.
Example: a 30-second sample of footage from a movie is Fair Use in an educational or journalistic context; while a five-minute long sample is not, no matter the context. (Have you ever thought about why TV shows about movies only use tiny clips of the movie, even if the point would be much better made showing the full scene? It’s because they have no valid Fair Use defence to using clips that long, and so would have to pay for the rights — which they don’t want to do.)
Obviously, a YouTube upload of a movie substitutes for buying that movie.
Less obviously, but still overwhelmingly proven, a YouTube upload of “the Phantom Cut” substitutes for purchasing The Phantom Menace.
And here’s a specific precedent you can look up: RiffTrax were never legally allowed to distribute the (copyrighted) movies they dubbed over with comedic commentary, just because their derivative work was transformative. A work thus combined would still substitute for the original movie. When they did MST3K, that was all public-domain movies; and when they did RiffTrax records, those were like ROM IPS patches, not containing the original IP but instead intended to be combined with it by the end-user (“simultaneous play”.)
A LongPlay of a JRPG likely provides all the “game” that many people want when they buy a JRPG. As this is done using the copyrighted assets of the game (dialogue, etc), a LongPlay is legally a substitute for the game.
To be clear, that’s not the point here, as sampling is an easier-to-satisfy criterion than direct substitutability is. But substitutability is a useful model for understanding sampling.
If a remix or radio edit is a substitute for the original song, then a song that uses 30% of another song as samples, could be said to be 30% a substitute. (This isn’t actually why, but this is a useful intuition that allows you to predict the law.) So you still owe royalties.
Now: how is a video of a speed run, or a commentated Let’s Play of a game, different from one song sampling another song, in a way that is in itself different from the way that a LongPlay is a substitutable good for a game, taken through the lens of sampling one work to create a derivative work?
Laws don't cover romhacks and mods. Emulation (but only the emulator part - the dumping your games to a ROM process isn't) is covered but otherwise this is not the case by any stretch of the imagination.
What's legal (in the US - in Europe, almost everything that doesn't directly enable piracy, so pretty much stopping short of allowing flashcards is legal thanks to a decision made in 2011) is building an emulator and making a cheating device for a game console. Otherwise there's no precedent for this (and game companies are reluctant to set one considering the previous times they tried to get one, it blew up in their faces) and the laws do lean in favor of the game publishers.
Modern console modding involves both reverse engineering (something with only an interoperability exemption in the DMCA under fairly heavy conditions surrounding scope and not publishing your findings) and bypassing Technical Protection Measures (the laws term for any form of DRM, regardless of effectiveness - your DRM doesn't need to be good to be protected, it just needs to exist and you need a good legal team - this is how Spotify's security works btw), which is almost entirely illegal in the US unless you're either a registered library (which is pretty much the only preservation entity acknowledged by US copyright law) or need to do it to enable interoperability (under the same conditions as the reverse engineering restrictions, so no sharing your findings).
Post-scriptum: I am not a lawyer, least of all a US one, speak to your actual lawyer for legal advice.
For extra extra fun: in Poland (I guess in the rest of EU as well?), you're allowed to use any means necessary to make a backup copy of software for your own use - even if it means cracking it, or cracking the hardware that it runs of.
In the US, something has to explicitly be made legal to be permitted. There has to be a law saying you have the right to do something.
In the UK, something has to be specifically forbidden by law, and even then it's very unlikely that such a law will ever be enforced unless you're really making a nuisance of yourself.
US uses Common Law as derived from the UK's Common Law. In theory in both countries something has to be specifically forbidden.
In practice that's not something I'd bet my not-being-in-jail on in either country. Whatever foundation of "anything not forbidden is permitted" has been crusted up with so many layers of governmental power grab that whatever the theory may be, the practice is that if it is not explicitly permitted it is forbidden, and the only reason things not explicitly permitted are allowed is because they just don't happen to make a fuss about it today.
It's fairly correct regarding copyright, where the default is essentially that the creator owns the material and then every fair use is carved out as an exception to that default assumption.
This makes fair use an affirmative defense, which is default risky because the process starts with somebody accusing you of wrongdoing (potentially criminal wrongdoing).
Yeah that is incorrect, and The Founders of the United States are crying right now.
One of the reasons that some members were opposed to the bill of rights was because they were afraid that the population would take it as a defining list of things they were allowed to do, as opposed to the stated: "The Powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people."
Romhacks and mods are shared with patches, not with the original games. Game companies have also not tried to sue those websites as you pointed out, because it's guaranteed that they would lose, the website doesn't host any of their content.
For breaking the protections in place indeed it's a bit different since it depends of your area, in the EU there's some interoperability exceptions which will cover breaking any DRM.
You might not need to break any of those protections for an old system though anyways, you can perfectly dump a SNES cartrige and there's no DRM preventing you to do that, you only need breaking DRM to run it on the actual console.
That might protect their direct distribution mechanism, but it doesn't change the far bigger bugbear, which is Intellectual Property. Almost every mod or ROM hack makes use of the original IP its applied to, in order to market itself. A Kaizo Mario romhack for example will kinda inherently use the Mario IP to get people interested. IP that is owned by, in this case, Nintendo.
Game companies haven't sued mostly because whenever it happens in a legal gray area (which is where romhacks and mods are - and a legal gray area is illegal if you don't want to retain a lawyer), they ended up getting blasted by their competitors (who often already do the same thing) in court.
It's worth looking into the game industry's legal cases (or hell, look at the Sony complaints about the Microsoft takeover of ActiBliz) - the industry is more than glad to try and legally kneecap a competitor if they can get it through on a precedent. Almost funny really. SEGA did the same thing back in the 90s.
I wasn't talking about SNES romhacks either (I said modern). Pretty much any system from the turn of the millennium onwards (which is the majority of systems nowadays) uses something comparable to a TPM, which means breaking them is needed and therefore, it's illegal.
> That might protect their direct distribution mechanism, but it doesn't change the far bigger bugbear, which is Intellectual Property. Almost every mod or ROM hack makes use of the original IP its applied to, in order to market itself. A Kaizo Mario romhack for example will kinda inherently use the Mario IP to get people interested. IP that is owned by, in this case, Nintendo.
That's not how any of that works though, otherwise you couldn't even write an article about Nintendo themselves without their approval.
Romhacks do not distribute any of the original content but are distributed with patches anyways.
> Game companies haven't sued mostly because whenever it happens in a legal gray area (which is where romhacks and mods are - and a legal gray area is illegal if you don't want to retain a lawyer), they ended up getting blasted by their competitors (who often already do the same thing) in court.
They don't sue because they know they will lose basically and losing would create a precedent.
> I wasn't talking about SNES romhacks either. Pretty much any system from the turn of the millennium onwards (which is the majority of systems nowadays) uses something comparable to a TPM, which means breaking them is needed and therefore, it's illegal.
Depends where, in the US for sure, in the EU you have interoperability exceptions which means breaking up any kind of DRM preventing interoperability (so pretty much all of them by definition) is legal.
You don't need to break any protections to dump most the old system games anyways either so that doesn't apply for old games even in the US.
I've been watching this since 2000 and I'm still unaware of any ruling that addresses this, even tangentially. I have never seen the law address the act of taking content from a major company and adding in content from a third party, despite the popularity of the practice.
"They don't sue because they know they will lose basically and losing would create a precedent."
I disagree completely that they would obviously lose. I think you're applying some combination of logic and wishful thinking to a situation where neither apply. The only logical conclusion I can come to about this situation over the past nearly 25 years is that they haven't codified anything because the current murkiness suits them just fine. There has been plenty of time to push a law through Congress that reifies that you're not allowed to make any modifications, but why bother with that expense when they can pretty much harass anyone they like at any time about it right now. What third-party mod provider has the wherewithal and desire to go toe-to-toe with a multinational behemoth so they can distribute their alternate Mario Kart courses or something? A C&D shuts down any sane person now, and a DMCA report takes out the vast majority of the rest. There's not a lot of need for them to established a precedent, and establishing a court precedent on this matter has been complicated by the inability and/or disinterest of anyone on the receiving end to take this through multiple levels of court, all the while incurring personal risk if they lose and only highly socialized benefits if they win (as they will most assuredly still be deeply into the net negative both in terms of money and stress). It's easy to wish someone else would take them up to the Supreme Court and establish that it's perfectly legal to mod games, to distribute the mods, and the game companies aren't allowed to prevent it, but the list of people willing to do it themselves has been pretty short.
Is it a derivative work of a book to says "Given an english copy of 'The Da Vinci Code' replace all occurrences of the word 'Jesus' with 'Dave'. In the current 20th printing of the english language version of the book you will find these on pages 1,4,6,..."
It is not. Telling someone how to run a process on a work to transform it is not breaching copyright in any way. If the person how transforms the work then distributes it, they will have a problem. But the person who told them how to transform it would not.
I think you are mixing up copyright and trademark laws. There's no copyright issue here as long as you don't publish content owned by Nintendo (which is the case of all romhacks I know of), Trademark can be still violated depending on the case.
There technically is a problem for the creator of the derived content. It is not quite as clear if distributors have any liability though.
Copyright in the US includes exclusive right to prepare derivative works. Just preparing, even if not distributed, without permission is a copyright violation.
A meaningful romhack is pretty obviously a derivative work. Even if one could convince a jury that the patch file itself was not, it would not matter, as the author obviously created the patched work first, in order to create the patch file.
Now, this prohibiting of non-copying of production of derivitive works is probably a mistake. It would be far more sensible to allow such creations, but only if no new copy is made and only if other exclusive rights (like public performance) are not used with respect to the derived work. But the law as written would certainly seem to prohibit romhacks.
The courts have been fairly inconsistent in rulings about derivatives that have not actually copied the work or its elements. There having been rulings that cutting pages out of a book and mounting them in ceramic tiles or even picture frames are infringing. (And other rulings that essentially identical cases are not infringing). Making baby bedding with purchased fabric with a copyrighted design is fine. Installing an alternate circuit board for a video game that speeds up gameplay is no good (Midway v. Artic), but an external device that does the same thing is fine (Galoob v. Nintendo).
The main reason Nintendo of America seldom goes after people who make or distribute romhacks as patch files is not because they can't.I strongly suspect it is a mixture of it not being sufficiently clear cut that they would win (and they don't want the precedent if they lose).
Its also possible that there is some other reason. Perhaps NCL is reluctant to let NoA do that for some reason. (Which would seem weird, as if anything NCL's mindset would be very strongly opposed to ROM hacks.) But more likely it is the other way around. NCL would probably like NoA to go after such sites, but NoA is probably more reluctant to do so.
Nintendo of America certainly knows about sites like SMW Central, romhacking.net, etc. Those site do get ocassional visits from NoA ip addresses. NoA have to know they could most likely shut them down with a single threatening letter, especially since they are making no money (not even running ads). But they don't.
NoA seems actively reluctant to go after people who are not distributing raw roms (a.k.a. piracy), and are not making money, unless the project becomes really high profile (since it could cause marketplace confusion, trademark dilution, etc), or the project is likely to be confusing in light of something they are working on (See AM2R vs the 3DS remake).
All the nonsense they have pulled with Streamers and YouTubers stem in part from the fact that those people do make money from using Nintendo content. The stuff they have pull with tournaments stems at least in part from tounament sponsors finally benefitting from running them. Etc.
Nintendo has always been fairly straightforward on this sorta thing if you look at their actions:
1. Don't make them care. Don't draw attention to yourself, just do what you want to do. Relatedly, don't talk to Vice, Polygon, Kotaku or any other authoritative source because then you'll be competing with Nintendo in the press for relevance, and that'll make them upset.
2. No piracy. Nintendo has a very wide definition of piracy, which includes emulation if it has the possibility of being done through piracy (which is most emulation but not most emulation development). Specifically don't do anything that can directly enable piracy, such as dumping ROMs or say... trying to organize a Melee tournament using a Dolphin netplay mod.
3. No money. Money makes things complicated and will make Nintendo care. Just straight up - you're going to need to do it pro bono. If you expect financial benefits of any kind, just go elsewhere.
4. Don't directly compete with Nintendo - no direct sequels or remakes.
Otherwise they'll turn a blind eye. This guy violated point 1 and point 3; tech blogs wrote about him and he put up a financial bounty for it.