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What does it matter if people who play MUDS tolerated them? It's not up to the MUD players or operators to decide it's ok to steal IP just like it's not up to the users of Napster to decide it's ok to steal music.
What you're saying is akin to saying that if I arrive in a port town and encounter a gang of thieves who regularly hijack ships coming into port and have been doing so for 20 years, the fact that the hijacking is ok with the very people doing the highjacking makes the highjacking ok.
I don't see that it matters one whit what the "mud community" tolerates or doesn't tolerate. It doesn't operate in a vacuum and special laws don't apply to it.
--matt
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