source PS3 jailbreak has been released on the unsuspecting public and the hackers claim that it does not violate any piracy laws, although we’re really not sure about that.
The PSGroove is a software suite that can be loaded onto a USB drive and the software is available for free download. The software allows users to load unsigned PS3 software onto the consoles, allowing users to copy their own games and apps onto the console, but it prohibits loading of ripped game discs through a backup manager app. However, it’s quite clear that the open source software suite could be modified to do just that.
Sony has already announced that it is working on a software fix for the jailbreak software, but it’s obviously and uphill struggle. In any case, unlike the Wii and Xbox 360, the PS3 has managed to stay immune to jailbreak attempts for years, so Sony’ really shouldn’t complain too much.
You can check out how it works here