Sony declares that any PS3 security circumvention “invalidates the consumer’s right to access that system”.
Not too long ago, a hacking group publicly released an “LV0 decryption key”. This gave enterprising hackers a means of easily decrypting changes in the PSN security code, and the potential to circumvent the security on any upcoming firmware updates. Sony are well aware that custom firmware on the platform leads to software piracy, and it has published a consumer alert stating that anyone found running unauthorized software on the console will be issued a permanent ban.
In the statement, Sony reminds consumers that using such software violates the license agreement terms for using the PlayStation 3’s system software and the terms of service for using the PlayStation Network. “Violation of the System Software License Agreement for the PlayStation 3 system invalidates the consumer’s right to access that system. Consumers running unauthorized or pirated software may have their access to the PlayStation Network and access to Sony Entertainment Network services through PlayStation 3 system terminated permanently.
“To avoid permanent termination, consumers must immediately cease using and delete all unauthorized or pirated software from their PlayStation 3 systems,” the statement warns. It concludes by stating that the permanent bans are “to help provide a safe, fair, online environment.”
Judging from the last statement, it sounds like users still have a chance to remove any custom firmware from their systems before Sony starts combing through the ranks to catch anyone optimistic enough to connect a hacked console to the PlayStation Network.