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I'd rather not see yet another great game shut down by cease and disist orders. Don't thnk Sony won't try if provoked.
However, if there's a possibility that I might spark an argument over this topic, should I delete this thread?
The way BallisticNG works with loading Wipeout assets is a bit of a copyright grey area since there's no actual Wipeout data in the game files, it needs to be provided by the end user. The way the user provides those files is entirely up to them (using actual legitimate game discs or ripped ISOs). If what BallisticNG is doing can be considered copyright violation, I'm not sure since we only offer the possibility of running Wipeout data. I think it would fall in the same terms as a PS1 emulator. However, tracks do need to be modified to run on BallisticNG's engine, so those aren't as clean as the ships.
To play it safe, Wipeout tracks are a no-go.
That's what I mean in response to NPC #888's above comment.
As for the tracks, I would have assumed the tracks needed to be modified in order to run on BallisticNG's engine, because otherwise, how would the track's speed and weapon pads work? Also, there would have to be changes to the track geometry and layouts. For example, WipEout 2097 and Wip3out have starting lanes for their tracks that go up to 12-15 contenders, but BallisticNG only features 8 contenders max, so the starting lane would need texture changes to only display 8 starting positions.
So the only way you could play the tracks is to convert them into custom tracks, and that option isn't available until a later update. Otherwise, like you said, it's a 100% guarantee that these tracks will not be included in the game to avoid potential copyright infringement, even if you're required to own a legal copy of any of the PS1 WipEout games to play these tracks.
I think it's sorta like going to someone's unused car, taking it apart to see how it works, and putting it perfectly back together without the owners noticing it.
Making local versions of the files versus running from the files live without copying makes no difference, and keeping the method hidden in code (which is meaningless) doesn't matter at all.
If they want to do this, they should strip out the decryption stuff, make a converter to read "various" track storage systems and write data specific to their game. The decryptor that would produce the intermediate format for it to read violates the DMCA and could only be distributed somewhere such laws don't apply. Even linking to it on a US site is probably a no-no (that "trafficking" part is super broad).
Seriously, running live from original data is in no way better than conversion, but has the added downside that 1) your converter has greater value to the future, and 2) you run a significant risk of making your game itself a derived work of WIpeout rather than merely a tool that produces a derived work locally for the end user. Don't go there.
All in all this BNG feature falls under the same category as PS1 emulators, only less serious because it only uses two files from the game.
Anyway though, WO tracks aren't going to be importable, exactly because of the copyright issues that (very unlikely) might arise.
And again, you can use WO tracks or vehicles as long as you do it by letting the end-user convert their own data to your format (and discourage distribution just to show how on the good side you are). Using tracks is no different from using ships (well, actually, ships are more likely to have trademark restrictions, which are actually much more of a problem than copyright). Both are WO game content with the same issues (you can help the use make a personal-use derived work under fair use, but you need to be certain you yourself are not a derived work).
But really, by far the cleanest and best of all is just to tell people about something that converts WO tracks/ships to your own track/ship format (and remind them not to distribute, but if they do, that isn't your fault). Then users get the benefit and it's all entirely outside the game, which just needs a good enough track and ship format to cover WO. A pretty cool goal anyway.