How are private servers allowed to operate without being struck down by copyright infringement or something similar? How was the source code obtained?
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You can’t copyright the structure of data packets exchanged between the client and the server. So the mere act of providing a private server isn’t a breach of copyright.
You don’t necessarily need the source code to host the server, you just need some program you can execute. If the server software was obtained and operated without the correct licensing/permission (eg. leaked/stolen code or binaries), that might be a copyright infringement. But that’s only a subset of the general concept of “private servers”.
Others may be using code that was developed to mimic the original server software, but as long as they don’t copy the original code (clean room development) there’s no legal problem. In other cases the game developers actively allow and encourage players to host their own private servers, freely providing the server component. People host their own Minecraft or CS:GO servers all the time (though there may be limitations to prevent exploiting certain aspects like online progress or awarding skins/loot).
There might also be a infringement if the serve software hosts copyrighted assets like maps, NPC models, story content, mission design etc. But whether that’s applicable depends on the design of the game and its online component.
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