PS3 Modchips Banned In Australia [Update]

Despite the fact that a 2005 Supreme Court ruling determined that video game console modchips were legal under Australian law, the nation's Federal Court has ruled that the new PS3 Jailbreak modchips are to be outlawed down under.

Earlier this week, a temporary block on the sale of the devices was ordered, but yesterday the Federal Court determined that the injunction is to be made permanent.

All PS Jailbreak devices currently in the country are to be handed over to the courts.

It's the second time this year an Australian court has moved on the sale of a console modification device, following a decision in February to bar sales of the R4 cartridge for the Nintendo DS.

UPDATE - OK, since the original post we've been able to clarify some points regarding the case:

1) A retailer tells us the ban is specifically related to the "PS Jailbreak" brand of devices, and is not a blanket ban on all PS3 jailbreak solutions.

2) The 2005 ruling was brought about over a single, specific modchip. While it was hoped this would set a precedent for all modchips, it's becoming clear that isn't the case.

3) Contrary to our earlier report, the four retailers in question do not have to pay Sony's legal fees.