Based on their rules, they might ban content of that nature being talked about in their own communities. However they have a high bar for defederating from other instances. Even if piracy talk isn’t allowed on lemm.ee communities, they won’t defederate from communities that do allow it. This means you can still see it when browsing lemm.ee, but it’s hosted somewhere else.

What lemmy.world has done is make it so you can’t see anything from those piracy instances when browsing from Lemmy.world. lemm.ee will allow you to see almost anything besides truly disturbing and illegal stuff like porn of the underage variety.