I don't think too many people here are too bothered about breaking the law, besides, what are TQ gonna be able to do from China when hardly any other nation will cooperate with international prosecution cases from there.
As per the stancher ID thing Hojo mentioned, each item has 2 IDs, 1 that defines what what kind of item it is (i.e. Stancher, ElitePearlRing etc...) and a unique ID that every single item has. It is the unique ID and not the Item type ID i meant. When, say, an item is dropped on the floor, the client sees 2 ids, the Item Type ID and unique ID. When you say "Pick up item" all you send to the server is the unique ID, and that unique ID is stored at the server side as being a particular item. It would be very difficult to thwart a system like that.