The question was is the program legal. The bios is something else altogether. The reason ePSXe is legal and other emulators like Bleem and CVGS are not is because Bleem and CVGS had the bios built into them, ePSXe does not.
Bleem! isn't legal? Strange, I have a Bleem! CD and I know one moderator here does as well...
And CVGS was bought out by Sony, it wasn't illegal...Sony just bought the program and doesn't sell it, but there are people who have legit copies of it...
My comment about other emulators was you need the BIOS to run them and unless you dump the BIOS yourself, you're using illegal data, of course I still have yet to see a Playstation owner sued for possessing a dumped BIOS, but I did see a website almost get shut down for hosting a Sony Playstation BIOS.
Sony not caring about it has nothing to due with legality.
Until recently, you could buy Bleemcast for your Dreamcast, I'm sure there are still stores that have used copies. Bleem! wasn't removed from store shelves because it was illegal. The company went under and the emulator is not very good. I own it so I can say it sucks to some extent, but it was a legal program and so was VGS. Sony bought VGS and took it off the market because it was a good emulator and the only way they could get rid of it was to buy it...
But whether a company is happy or not with an emulator has nothing to do with it's legality.
Of course Sony knows about it. If the software is free, and the authors aren't making a profit or using copyrighted material than there realy is no grounds that Sony can sue them for. If lets say the Bios was included with these emulators, then there would be a reason, but they aren't so it's totally legal!
If I make subtitles for a film in another language, will this translation be illegal? Bearing in mind the fact that you must have the original film, otherwise any translation will be useless, it is legal. So why should there be any difference comparing to the emulators?
I must pay Sony in the following cases:
a) when I want to get its BIOS;
b) when I want to get its games.
If I don't pay anything or if I pay for each of these elements, but Sony receives no money, it is illegal (at least it should be).
Another problem: if I try to sell my subtitles of a film which I am not an owner of, will it be legal? So am I allowed to make money from an emulator that uses actually a concept created by another company which I do not own?