From my personal knowledge of how they operate. Xseed will purchase the rights to a translation from the fan translator. Now I'm not trying to be a dick here, but there are more people involved in a fan translation than just the translator. There are hackers and programmers out there that also do the translation, but more times than not, the translators do not know how to access the script. That is where the programmers and hackers come in. They create the tools and have the knowledge to modify the games. As for who owns the translation of a script, it actually is the person who did the work on it. BOTH the hackers and translators. It breaks down to a rule of taking all the credit for yourself when multiple people helped you reach a certain goal. Now even though the translated script may belong to those who worked on it, you have absolutely no copyrights unless you have paid the original license holder. That is the gray area of fan translation. Most companies who have no plans of releasing the game in another language, usually don't pitch a fit if you are not trying to make a profit from THEIR WORK. When the time gets closer, we are gonna give a very large push for people to purchase the games so that Falcom can still make a profit off of it. But let's be realistic. It's the internet. Most people will not be purchasing these games because they just don't feel obligated to. It would be nice though.
Back on topic. Other than the quick search I did earlier in the week after this announcement, did I find that they had purchased the domain for Xanadu Next earlier in the year. i find it strange that they are releasing a game from 2005 like they did some great feat of miracles putting it out, when the fan translation was last updated at least in 2013. I prefer fan work because they can be true to a script without caring about being PC. I felt the same way about Brandsih after Flame had started work on the game. I called BS on that one. We all know the PSP is a dead console except to fan works. They might still be releasing games in Japan, but it is mostly the love sim stuff from what I can see. I've lost my train of thought. Trying to not bash to hard on Xseed but some of their practices are just a screwed up.
...and just a small bit of info. Nightwolve has ever right to talk smack since the tools to work on those YS games were taken from HIS server. He should have been paid for playing a key part in those translations. But instead he was black balled.