On Alistarr the practice of Demon Sorcery (The Art of binding a Demon into an object) 
is not an Illegal practice, but nor is it a legal one either. It mostly boils down to
who catches the practioner doing it.

For example, Cosza's Emperor Chenbar encourages the practice, as long as it is to his 
benefit. Whereas the High King Boris Stavantagg, of Farlanth would order the
practioner put to death.

The actual art of Demon Sorcery is as follows.

The sorcerer uses the spell summon (species-Demon), and must know the True Name of the 
Demon. Then the Binding enchantment spell is used.

A demon cannot be bound into just any common object, they can only be bound into special 
items. A Power Crystal is the only natural object that is suitable for binding. All
other objects such as Weapons, Armor, Rings, etc. must be specially crafted out of 
magically enhanced materials.

A standard Iron sword would not contain a demon bound into it. But a Runically Pure Iron 
sword would be strong enough. The same principal applies to other items which a sorcerer
might bind a demon into.

In general practice the sorcerer makes a deal with the demon to be bound, so it is an 
aggreeable process for both of them. A demon that is forcably bound will always attempt to
exert its power over the person that possess the item. In some instances the sorcerer 
looses the item, or is killed and it is taken from the body. In these cases the demon 
realizes that it's deal is over, but it cannot escape the item, so it will attempt to 
exert power over the new owner of the object.

Demons will also contract sorcerers to bind another demon that may oppose their particular 
plans for power. These objects are usually given to the contracting demon. But upon occasion 
these items are stolen or lost and find their way into the hands of mortals.

And even more rare is the Demon Lord that binds one of it's minions into an object, then 
purposely deposits the object on the surface world for any unsuspecting mortal to find it.
This is done to both punish the demon for some transgression and to possibly corrupt or 
destroy a mortal person.

Game Masters should be very careful in the use of Demon Sorcerery. For if not handled carefully 
it can severely unbalance a game.