As far as I know there never has been a legal precedent set when it comes to legal standings for mods made for games.
There is no black and white laws that can be looked up and researched that will say what can and cannot be used or done with mods.
This is all pretty new ground in legal terms for use of software and mods made for said software.The only way I can see this ever being settled is to directly go to a copyright attorney and get his opinion on the matter.Because until actual laws are in place and carved in stone then this kind of debate will always continue and no one will really know what truly is right or wrong in the legal sense.There will always be that fine hazy line.
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