I don't know warez well, but I had always thought it was about furtively distributing licenced binaries.
Reverse-engineering binaries is something completely different: it is about getting assembler back from the binary, then trying and building new code to replicate some or all of the initial binary's features.
Despite what the motion pictures and music lobbies would like us to believe, in most countries this is perfectly legal given some conditions (eg: there's no other way you can get your hardware to work with your OS).
Yet some clarification would indeed be needed, because there are other kinds of reverse-engineering. For example, maybe you have a database with tables, and you want to reverse-engineer it to obtain a "conceptual data model". I don't know the Linux tools for that...