as long as analogue didnt use the devices actual hardware design and code, its completely legal. theyre not selling you games, theyre selling you a piece of hardware capable of playing said games with their own hardware design.
i dont want to say emulation in a soft sense because its not software emulation, its hardware to hardware emulatoion.
itll (likely) be the fastest gaming cpu on the market, but it also likely wont be priced well either. the recent rise in price on the 7800x3d is due to a slow down on its supply, and probably also to make the 9800x3d serm like its priced well when its going to be costly.