Just guessing here, I think they are aware, but look at it as something they really can't control, so might as well shut up and enjoy the free advertising. Alot of the games have links to the originating sites built right into them.
You're right though. The fist could come down some day. but if it does, its not going to be easy for them. Especially since there are tons of sites out on the web giving their games for free and also giving permission for them to be modded for this arcade system.
Its one of those What If's that we just gotta sit back and whisper softly about. :P
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