nipsmg said it best.
Just because you don't get caught doesn't mean it's OK.
One of the big problems here--and one of the reasons I think we can all disagree--is that this area has not yet been legally well-defined. The MAME team, et al, keep it from being well-defined when they word their license the way they do, and when they agree to take ROMS out when they're asked. The arcade industry keeps it from being well-defined when they know what's going on, but turn a blind eye and occassionally ask a ROM to be removed.
It's in everyone's best interest to keep it this way.
I'm not sure I can put everything in the right order, but here's a try:
There IS such a thing as copyright and IP, that is protected by law. It makes using IP without a license illegal, and subject to criminal penalties (fines, imprisonment, etc). It *also* gives the basis for CIVIL suits, which is where the IP owner attempts to recover damages from a transgressor. These proceedings take place in a separate court system.
A criminal case is prosecuted by the government. Usually they don't do this unless someone presses charges, though the recent Adobe case is an exception. There's not much that can be done about this unless the laws change.
A civil csae is prosecuted by the injured party. The interesting thing about a civil suit, is that case law is generally defined by a jury. And a jury is a very unpredictable thing.
The reason I think that we haven't seen more from the copyright owners is that in a civil suit, the following complications for them arise:
a) Damages. They have to prove that Stanley MameUser's use causes demonstrable economic harm. Then they have to prove what that harm is, in order to get an award. Civil suits are often dismissed by a judge out of hand if there are no demonstrable damages.
b) Limiting of Damages. An IP owner, moreover, has the responsibility to take action to limit damages. Once they find out their IP is being used illegally, they have the legal responsibility to try and do something about it to stop the infringement. Thus, the longer they wait, the more difficult it might be to show that they took steps to limit their damages. This is especially true of a company that asked the MAME team to remove a ROM; they clearly knew what was happening, and if they allowed some ROMS to stay in while asking other ROMS to be removed, this could conceivably be interpreted by a jury as implied permission. Note that in this case, the longer the status quo is in place, the more difficult it's going to be for the copyright owners to prove they attempted to limit damages.
Moreover, whether it's written into the law or not, a jury could conceivably acquit on the grounds of good faith. If Stanley has every Namco museum/William collection/StarRom ever published (much more expensive prolly than just buying the boards for those games), a jury could conceivably find that Stanley did NOT obey the letter of the law but he HAS attempted to follow the spirit of the law and that the company suffered no damages. (These games are the ones which, in my opinion, could offer the best damages argument for the industry since a Namco museum type product is similar enough in intent and use to the way Stanley uses Mame.)
To make it even more complicated, I understand there is a petition which the DMCA committee is taking seriously regarding the preservation and use of software for abandoned hardware. Many of these ROMS could fall under that, depending on how it's worded and whether it's adoped (I know little about it).
The first suit of this kind is probably going to define the tone of any to follow. So to make it worth the arcade industry's while, they have to sue and hit a home run. A verdict in their favor but which awards no damages probably won't cut it as far as making any further enforcement efforts worth their while.
So everyone is just waiting to see how it goes. A suit is risky because besides being expensive, a lot depends on what judge hears it and what jury decides it. (Juries HAVE been known to disregard the law in favor of common sense (or viseversa) from time to time.)
So please, don't press the issue. Avoid doing anything that might even look like you're making money from the MAME software or ROMS. Ask your friend to buy a multiwilliams or something.
And home MAMEusers: Buy starroms. Buy dead boards. Buy Namco software. Play videogames in bars and arcades, preferably in front of subpoenable witnesses.
b