There are two types of piracy being discussed here.
The first is the person who pirates a game, movie or music online. They were not planning on purchasing the product, so they can justify stealing it and not paying. They see no one losing money with their piracy.
The second is the person who sells pirated merchandise, like the person in the original post. People are paying money for a product. They are making money off of games that other people made.
It is like lending a CD to a friend to rip, vs selling copies of the same CD to 100 people at $3 each. Both are piracy. Both are illegal. The one is ignored, the other one is not.
Should piracy be illegal? Of course it should. Otherwise, I would open an 360/DS mod shop and game sales shop next to every Gamestop in the US. Enforcement should be directed at people making money off piracy. (and who are stupid enough to advertise for it.)
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