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In otherwords... it doesn't apply when it's against the law.  Also, the whole "jurisdiction" thing doesn't really apply, because again, it's against said laws.


It isn't really sony's XMB once they sell you the product... it's as much the consumers as it is Sony's... hence why there are in fact laws that prevents Sony from just outright bricking everyones system whenever they want.


If sony were to release a new XMB that was to stop all functions and turn the PS3 into a paperweight... what do you think would be the legal ramifications?

Once Sony puts the XMB on the market... they lose full rights on how they can modify it and submit to the laws of the countries in which they sell their product.

 

Of course you know... you could also just... read the lawsuit.

http://ps3movies.ign.com/ps3/document/article/108/1086720/gov.uscourts.cand.226894.1.0.pdf