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Barozi said:

The only thing where Nintendo could take action is if a bios was included in the emulator. That's copyright material.

"Despite three years of active development as an open source project, Rydgård told me Nintendo has never contacted the group with legal threats or demands. Dolphin actually skirts the legal issues that concern most emulators--while it's entirely legal to dump your own ROM images and system BIOS files, obtaining those files online enters shady territory."

"Unlike the UltraHLE guys (of N64 emulation fame), we've never heard from Nintendo at all. . . .The emulator itself is legal: as long as you rip games that you buy and play them with Dolphin there's nothing that's even questionable going on. Dolphin does not require the use of a BIOS file due to the 'OS' on Nintendo systems being built into each and every game."

http://www.1up.com/features/chances-play-mario-zelda-today?pager.offset=1

100% legal.

And even downloading games you own (if you don't want to rip them) is legal in many countries.

Wow, I never knew the OS of the Wii is included in every game. Seems to be pretty small if you look at games like NSMBW with a size of 387MB (also meaning OS != NAND). I guess "You learn something new every day" IS true afterall^^