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If the XB1/360 backwards compatibility involves downloading modified versions of the original game, like with some (or all!) PowerPC routines replaced with x64 routines, well, there are those who would regard doing that without explicit permission as a copyright violation.
I doubt it's doing that. It would be a huge effort to make any game work because you can't just copy paste out processor specific routines. Microsoft said all they needed was permission and nothing else from the devs, so it would be impossible to alter the source like that if literally nothing else is required. I'd wager a large amount of source is straight up missing too.
I bet you have to download the game into the XBox360 virtual machine either through Live or installing it off the disc. Hence the "Download" requirement.
Copyright won't be an issue, since Microsoft have stated games will only appear if the publisher agrees - hopefully the fact it's "zero effort" at that point will be enough to persuade most to just say yes.
And they wouldn't need source code, just run the entire PPC binary through a direct assembly level translation to x86. It'd be a bit of a performance hit, but not necessarily much and the improved performance of the hardware should cover the gap. The biggest issue would be the compute power necessary to actually translate every title out there, but they have Azure for that.