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They certainly violate the DMCA in the USA, and they will also violate the new laws coming down in all european countries because of a european directive. I'm not saying people will be actually sued for breaking a copy protection, but in the USA this is theoretically possible NOW. The DMCA forbids any bypassing of a copy protection device, and this includes patches. It will be interesting to see whether they can actually enforce this, but don't have to much illusions about patches...
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Thats actually not 100% correct, what we have is stand alone "NO-CD patches" which lets just say, change the games orignal "byte Patterns" (jumps etc.) to disable the cd checks, this is not illegal, as the no-cd patch does not contain any of the games code (for instance, the no-cd patch can be a dos mode program, or a patch created with some in-house software). On the other hand, however a "Fixed exe" as most people like to call, are the games original executable with the code "reverse engineered" to remove the protection (removing the protection is not illegal in many contries, as this constitutes "backing up your game", im not 100% about this in Europe though), however the "Fixed exe" still contains the games code/coding, therefore using these "fixed exe" on a non legite copy is no different to pirating the game itself (as in obtaining the copy illgeally, say off some of the popular peer to peer programs, kazaa, overnet, e-donkey etc.)
And if you don't belive me check with your local BSA, and they also comply with the digital millenium act.
But Krondike if you say in your homeland that you can't backup your games in any way (which by the sounds of things, you need a new government!, as you legally purchased the game, and if its a "US" copy, then the EULA agreement still gives you the right to back up the game, when you click "I agree", so theres a bit of a technical for all the lawyers out their!) then yes that means any form of backing up your game, whether is be no-cd patches or not is illegal. Do you know why they came up with this law Krondike, and was there anything anyone in Swedan could have done about this? Pertition perhaps? Letters to the government? I know that letters and that might not work, but sometimes its worth a try.
BTW whats heppening with Alcohol 120% software? Because didnt they have to stop making it or something?