It's provided as a patch - you still need to procure the original ROM yourself (legally or otherwise, but that's on you). Someone more knowledgable in copyright law can discuss the specifics, but AFAIK this is totally legal. It hasn't been any kind of problem for the ROM hacking scene so far, anyway.
It's distributed as a patch file, and also he founded and currently serves as director of the company that originally developed the game. I think he'll be fine.
wk_end|4 years ago
reificator|4 years ago
spicybright|4 years ago
There's even events just for sonic rom hacking that happen yearly like Sage: https://twitter.com/sagexpo