How is it that you have to pay to play most games from gametap, yet it is illegal to download a rom from an old console, such as Nintendo? Can someone clue me into how this is legal? I would think that playing an out of date rom would be more acceptable then having to pay for games that are more recent.
I can explain this, it's rather simple. They have a bunch of old games, and created back-ups for every game they own legally under USA law. They offer the games for "rent" on the internet, so when you're using a game no one else can use it (but they could use another copy of the same game if they have multiple copies). The game is never saved in a permanent state on the client's machine, and as soon as they quit the game, or disconnect from the internet the game is deleted from their PC's memory. Gametap believes this is legal because the back-ups are legal, and it is legal to rent a game.
Unlike what's been claimed above, they have no arrangement with Nintendo or anyone else, nor do they pay any "licensing fees". Nintendo once threatened them with legal action but then backed off.