So... how legal is this?

[Dazz]

Breaking a piracy law is like Dazz posting a ripped sprite sheet/model/sound effect/texture and claim that he made them himself and that they are "totally original", which he isn't doing. It clearly states at the bottom of each page of the site (except the forums) that everything posted on the site is the property of its rightful owner. So, Sonic belongs to SEGA and Mario belongs to Nintendo. I don't see a reason for complaint.

I totally forgot about that message at the bottom of the screen. Still, that isn't always full-proof in every case. Whether or not you're saying who owns content, it's still the owner's decision if you're allowed to host it.

Puggsoy is right here - I could post a video file of a film and say it's owned by Warner Brothers, doesn't mean they aren't going to sue my pants off. It's only there as more of a clarification that we aren't claiming to own anything.