i always wonder, how do games like this, that have paywalls and paywalled content, get away with using obviously copywrite content?
Just hoping they never get noticed?
Technically it's not a paywall issue. Any reproduction of copyrighted material is prohibited unless it falls under fair use, regardless of monetization. The reason it's not pursued by most corporations is because the data's been in on reproduction and pirating for a long time - pirated IP (1) almost never represents a lost sale, (2) advertises the product, (3) generates whale consumers. And that's weighed against the (admittedly small) cost of billed hours in drafting a C&D in the first place.
Basically, they know there's a 0.0% chance that anyone will ever say "oh no, that porn game developer who uses freely-available clips shut down due to a lawsuit... guess I better go pay $20/mo somewhere so I can get some porn." But they do know it's free advertising (and more insidiously, that there's a small but real chance the content further contributes to the porn-addling of an impressionable mind.)
Corporations and many creators cling to the (outdated and inaccurate) idea that piracy represents lost sales. I was talking with author friends of Shanna Germain on twitter during one of their gripe sessions about piracy making it hard for them. Checked demonoid and a few other sites - and in an unusual show of friendliness I chose not to tell them that there were literally zero trackers for any of the authors besides Shanna (who wasn't complaining anyway). Nintendo, Games Workshop, and the like - you'd think their boards consist of financial masochists, the way they crack down on even borderline-fair-use content, but it's just a antiquated mindset that needs a few more decades to die of old age.
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Slightly off-topic, but I have a hard time thinking of any of the patreon code exhanges here even being considered piracy, since most are just methods of avoiding mind-numbing grind. If you want people to pay to play LESS of your game, make a better fuckin' game. Not applicable to Pig&Pug afaik.
Slightly on-topic: Paywalled content, game modes, or even just charging for the game in the first place - I can think of that as piracy, but'll still almost never represent a lost sale. ("Better break out the wallet so I can see Kendra Lust's asshole for the 92nd time" - no one ever.)