The Australian court has ruled that the PS2 modchip is legal in that country. Seems this is just another page in the continuing story of Sony going after the consumer to stop them from doing unintended things to their hardware (re: PSP hack firmware). However, this ruling is not the end of the road as the recent Australia vs. Kazaa case has shown that complacent technology is enough to constitute as a copyright violation.
All six High Court judges held that widely-used mod-chips were legal.
While the decision is likely to please gaming enthusiasts – settling a long-running dispute over the legality of the chips under Australia’s current copyright laws – their victory is likely to be short-lived.