I went back and read chapter 37 again. You can see how Jesse looked surprised when his face turned up on the big screen so I think it exists in reality. I think he lied to Law saying that it was just a video he created to fool around.
my thoughts are that Jesse's thoughts about how Moritat could be abused were the same then. He never intended it to be for commercial use. Whether he was just tinkering around in his workshop, or he created it just for funsies and decided to use it on Law to see his true motives, like someone said above. Jesse seemed really adverse to it in the beginning, and couldn't believe that he would give the approval for such a dangerous and invasive machine.
I agree. Jesse only wanted to use it the one time and never let it get out into the public because of how it could be misused. I think he only used it on Law because he wanted to know what freaked him out enough to hyperventilate and pass out. After getting his answer he was satisfied not using it again. So with Law bringing it up again, Jessie would definitely be motivated to pretend it never existed. Jesse would in no way want it to be used against him. Jesse doesn't really want Law to know what he is thinking because that is how he is able to manipulate him so well. I think that the maid not being fired doesn't mean that Law is in moritat, I think Jesse just kept her around because he likes Law's jealousy. So right now I don't think that Law is in moritat but I could be totally wrong, this manhua is definitely keeping me on my toes, but that's why I love it so much.
When Law said that it's a "blatant lie" did he mean that Jesse was lying? So does that mean that thing that can read people's subconscious exist? And if it does exist, did Jesse lie to Law because he was afraid that Law might use it on him? Someone plz give me your thoughts~