An Australian court banned distribution of the mod. This week, Australia made that ban permanent (PDF of court order) and demanded that all the completed mod chip product be turned over to the court.
Win for Sony, right? Well, not so much.
As it turns out, the guys who hacked the dongle decided to release the code, now called “PSGroove” as open source, to the Internet.
Complete blog entry with a warning http://www.zdnet.com/blog/government/playstation-3-hack-banned-by-court-but-not-before-released-into-the-wild/9362