What do you mean "What's the deal?" What's your actual question?
SWC was shut down by LA at one point because LA thought it would damage their market for SWG. The Admin managed to convince them otherwise, and we are allowed to continue to operate as long as certain considerations are met, as I recall.
Obviously primary among these is that the Combine doesn't make a profit.
Someone else might be able to fill in more specific details.
"May the Grace of Ara go with you, and His Vengeance be wrought upon your enemies."
I kept myself informed during that little fiasco, and have been in conversations since then about copyrights and such...if you have a question I can help fill you in about what is and isn't allowed by the Combine.