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Admiral-Snake said:

Modifying Hardware is one thing.... but messing with the software is a whole completely different discussion/topic. Seriously Big Companies shouldn't be bullying the consumers, however consumers shouldn't think they can just do what the hell they want with the software. After all YOU OWN the hardware NOT the software.... Geez.

You are correct so far as this goes, but this is not quite what Sony is accusing the defendants of doing.  The accusation is that the defendants have found a way to modify the hardware in such a way that it now accepts previously-unauthorized software, not that they're modifying Sony's own proprietary software; in fact, the basis of the action is that the defendants are circumventing Sony's software entirely. 

The motion makes a point that people could use this method to pirate software, but even Sony does not, and can not, claim that the only use for this is to pirate software.