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Mr Khan said:

This is a flagrant violation of consumer rights to a severe degree.

Watching youtube vids makes you a criminal!

Sony is going to get their ass handed to them on appeal so bad it'll make their heads spin

It doesn't say anywhere that watching a youtube vid makes you a criminal. They asked for the IPs so that they can conduct their investigation.

And IIRC the ToS is legally binding, and therefore cracking the ps3 is suable.