The legality of it depends on what is done. If the coder writes their additions from scratch, that is perfectly legal.
If the coder takes a dump of the psp's firmware and modifies parts of Sony's copyrighted work and THEN distributes it, is illegal.
Cases in the US Supreme Court deemed that circumventing any copyright protection installed by the owners of the copyright, is ALSO illegal. So just by decrypting that 2.0 and up firmware we are already breaking the law in the US.
The same applies to burning CDs or DVDs which also have these protections.
So in short, it all depends on how the new firmware was produced. If the additions were coded from scratch, then its legal. If its a copy and paste job using one of Sony's firmwares, then its illegal.
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