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It's hardly comparable to piracy. Rather than buying a CD and making a copy which you then sell to someone else, this is more like buying a CD, improving it with several tracks, and then selling it on.
It's really no different from someone handing in an old game at a game store in exchange for store credit or a different game, except that in this case the someone is brighter and actually turns a profit.
Personally I don't think it's covered by any laws, though it's probably covered by EULA's.
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