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Wyrdness said:

What's to say no legal action has already happened or been resolved by both parties, you think big companies want lawsuits out in the open, a lot of the time these things happen quietly or are settled out of court.

Uh, one would think part of the settlement would require Konami to stop doing the thing they were sued for doing, right? Why would they be doing this if it was directly costing them money? Why would they do it if they knew it was downright illegal and had already been prosecuted for it?

This report is vague and unsubstantiated. It's more likely the report itself is false than that Konami is somehow getting away with such illegal activities or continuing to use illegal practices despite being sued for them.

I'll settle for something in the middle: the report is true, but the internet is blowing it out of proportion, it isn't as bad as people are making it sound, it certainly isn't illegal.