As of 2016, PlayStation 3 mods are illegal and are considered a violation of various copyright laws. PlayStation claims that any unauthorized software or pirated content found on its consoles might lead to a permanent ban. PlayStation also urges all users to remove any unauthorized content to avoid legal action.
In 2011, Sony filed a lawsuit against a PlayStation 3 hacker for jailbreaking the console. Sony eventually dropped its lawsuit in exchange for the hacker's promise never to hack any Sony products again. According to the court documents, failure to comply with the terms of the settlement carries with it a $10,000 fine per violation.