Ross tech have created their own hardware and software which will read these codes, they are not affiliated with the VW group in any way.
Ross tech are not subject to block exemption rules but their products are copyrighted so anyone who copies ross techs equipment and software is commiting copyright theft.
I don't believe this is correct. The last time I looked at this, the software just interprets fault codes, which are subject to block exemption and therefore provided for free by VAG. If the Ross-Tech software was sold from within the EU it too would be subject to block exemption, and therefore they would have to provide access the source code.
This is why Ross tech charge you for the cable, and not the software, and it must be purchased direct from the USA. The ross-tech software just looks for a ross tech cable and doesn't fire up until it locates one. Using a non-ross tech cable with ross tech software is not illegal and you commit no offence by doing so with a cracked copy. You cannot steal software that is given for free. Any private prosecution for copyright theft of the software would have to prove the loss due to copyright theft, which in all cases would be zero, so effectively no case.
I had this argument with an employee of Ross Tech on the Briskoda website a couple of years ago. AFAIK they have still to report anyone for copyright theft because it won't stand up.