In Australia it's not illegal to put a modchip your own console, nor is it illegal to have a buisness based on modding other people's.
A while back sony sued a guy for installing modchips, they lost (modchips were legal). Sony then appealed to the supreme court and won (modchips were illegal). The guy then appealed to the high court (the highest court in the country) and won (modchips were legal again, largely based on their ability to remove region locking which the judge made note of objecting to).
Distributing all the files to make a pandora's battery is illegal as it is modified sony code, that's why it was released in a way that requires you to have a homebrew-capable PSP to run a program that creates them from DAX's code and official firmware installer files. I'm unsure about the legality of just using them to provide a service but based on the lack of technical knowledge of (most, not all) judges I would assume that's (currently) fine also.
While 20 Pounds is a complete ripoff, I'm sure C&D knew it would happen even before their work was leaked pre-release and people started charging others to use it.
Anyone who wants to downgrade a PSP or run homebrew will find out about pandora if they do the slightest bit of research via google, so only morons or people willing to pay that amount for the service knowing full well it's free origins will be giving the guy any money.
He sounds like a jerk but I wouldn't loose sleep over it.
I'm personally against piracy, but I dont hate the CFWs.
It's crazy when sometimes the same people who complain about the government becoming a 'nanny' state also seem to act as though something being legal somehow means it must be moral (and vice versa).
It's about personal responsibility, you wouldn't feel ok about killing people if they made it legal would you?
Every country has differing laws, despite the USA's best efforts to force their world view on others.
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