Mrniceguy
Trakanon Raider
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They probably figured that this would be about the only server to really use the code, at the time. They thought that if they could not write code that actually could make the game fun and interesting, that nobody could. They never considered competent coders taking advantage of the same people they did.
There were already multiple other EQEMUs at the time. Realistically the truth is that Smed and Holly thought EQEMU was positive for the IP. JChan and the current dev team don't, but the reality is legally they likely can't go back. DBG biggest mistake was not making the rules of said Agreement public. Had they made it public they would have a much stronger case.