but it's Valve which is blocking them not Nintendo
and sure Valve might do so on behest of Nintendo but it's still Valves doing so
the idea that Dolphine (or Valve) have to asks Nintendo for anything is just completly absurd and beyond any legal basis
which is why Nintendo doesn't use the proper legal methods here IMHO, because then you can dispute it and they can (probably will) lose
but as long as Valve plays along there is nothing much Dolphin can do, so again it's Valve who first needs to be convinced before then either Nintendo gives up or you have a proper legal dispute with them
anyway like you correctly pointed out there is no way for Dolphin to affect Valve so the is no way for Dolphi on steam
Legality is not the issue here. Not everything that is legal can be published on Steam. The people who make it a legal argument after this article are missing the point.
All indications are that the dubious legality of ML-generated art is exactly why Valve is not approving those games. Valve isn't taking a moral stance against ML-generated art, they're playing it safe legally by avoiding distributing such games when they cannot ensure the ML models were not trained on unlicensed content and will not spew copyright infringements.
Valve isn't taking a moral stance against emulators, they're playing it safe legally by avoiding distributing such games when they cannot ensure that unlicensed software won't be run on them and will not invite copyright takedowns.
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Valve doesn't want to carry software that they may be sued over as a distributor.
Until they are on very firm standing that it is ok, they pull the software.
As a distributor of software, Steam has no appetite for distributing any software that may lead it to legal entanglements. Spurious DMCA requests, AI art, or credible threats from Nintendo - that game cannot be distributed.
Valve limited there store to "in general not contain products of a certain type (here AI art containing)".
But in case of Dolphin this isn't the case but a explicit ban of dolphine without it braking Valve TOS.
If Valve would but in their TOS that "emulators are generally not allowed" then rejecting Dolphine would be okay and no one would have wirten any blogs or news articles about it, or even tried to put it on steam.