https://twitter.com/stephentotilo/status/1762576284817768457/
"NEW: Nintendo is suing the creators of popular Switch emulator Yuzu, saying their tech illegally circumvents Nintendo’s software encryption and facilitates piracy. Seeks damages for alleged violations and a shutdown of the emulator.
Notes 1 million copies of Tears of the Kingdom downloaded prior to game’s release; says Yuzu’s Patreon support doubled during that time. Basically arguing that that is proof that Yuzu’s business model helps piracy flourish."
AFAIK rooted Switch consoles are used to decrypt the games and Yuzu just tries to execute whatever nonencrypted Switch binary. Unless Nintendo can prove that either the Yuzu developers themselves are behind ripping commercial Switch games or directly colluded with the rippers, they’d have a hard time to actually win. That said, regular people with normal income levels will probably just sign everything because a prolonged lawsuit is about just bankrupting them, not being ruled the win by the judge.
From their own guide
Their guide also talks about dumping games from your console so I’m not sure how far it goes, but if they want console keys they are likely decrypting something
Yuzu doesn’t do any encryption breaking. The user is meant to use their Switch to dump their keys, which are legally owned by the user. Then it uses those legal keys to decrypt the ROMs by the exact normal method that the Switch itself uses. They were going based on precedent legal rulings about console emulation. Copying the decryption keys and making copies of the software for archival purposes have both been previously ruled to be perfectly legal for the enduser and don’t constitute piracy. This suit will challenge that notion.
this is the part where they circumvent the copyright protection, even if you do it “the same way” it’s still not authorized, the DMCA is fairly broad about this stuff, one of the reasons it’s so bad