i think people are just getting too complacent about copyright infringement etc. they will just push and push until they attract someones attention and then the 5h1t will hit the fan...
maybe not these guys though. they are at the thin edge of the wedge. but the next guy that comes along might say 'well these guys are doing this and that, so i might just go just a little further. no one will notice'. and then eventually someone might notice...
Danny, they have been making 900 game mame based JAMMA boards in Asia for YEARS.
The smarter manufacturers don't acknowledge it because
A: There is little legitimate way to make money off most old titles, at least not for the manufacturer.
Case in point, Namco TVGames joystick. All Namco can manage to get for 5 A LIST titles AND the hardware is $15. Which tells me the rest of their library is largely worthless.
B: It costs money to pursue the copyright infringement people, and that is money that they are never going to recoup.
Case in point. Road Fighter. Decent little Konami conversion title, from around 1984. Wasn't a hit, they probably lost a little money on the arcade version, and made it back up with the NES port. Today that title is bootlegged on a 10,000 in 1 NES unit. Konami could do the smart thing and IGNORE IT, or they could waste money going after a game that wouldn't even be popular today if they offered it as a free download from Konami.com
Personally I think a lot of companies would best serve themselves and their customers/shareholders by public domaining their non-viable titles (which is 99 percent of them), and only defending their viable ones.
Namco wastes money defending crap like Mappy. I'm not really saying Mappy is crap, but it certainly isn't a viable product today. Mappy as a character never caught on, despite being in several games. Mappy's time is over, there aren't going to be any new Mappy games, so why waste money defending him.