Backups aren't the issue. Circumventing copyright protection mechanisms is the issue. It's a violation of the DMCA just to have CFW on your system.
Originally Posted by Newt182
Nobody has ever been sued for having personal "backups" of anything, even if they didn't have an original. People have been sued and charged for SELLING "backups", or UPLOADING "backups". Possession is not enough, in legal terms, to meet the requirements of a violation. Distribution, on the other hand, does.
As for your modded console, though, it certainly meets the requirements of a DMCA violation, chargeable under the law. According to the law, you are in possession of an illegal piracy device.
...this is why the DMCA is a bad law.... but it still is in the books, and you can bet Sony will use it against you, just as Sony is pursuing cases against German end users using German law.
Working hard on UberCFW, incorporating NTFS, sub-free NetFlix and Blockbuster, PSN cheat system with built-in swearbot and MAC-spoofing, Adding MKV, RAM and BIK movie support, and Xbox360 emu*.
*not really. Get a life, newbs...
My YouTube channel: http://www.youtube.com/user/BenJeremy