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This is some bullshit. Nintendo is claiming because they use prod.keys, it’s only purpose is piracy. Yuzu does not include the keys and people that own the games own the key.
By using these keys to decrypt the games they are circumventing anti-piracy measures which is already illegal in a lot of countries. Even if no actual piracy was involved, what they are doing with the prod.keys almost guarantees them a loss in court in all of the EU and North America.