So... how legal is this?

[~Axis~]

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.