Sony Computer Entertainment America has filed a lawsuit against an online retailer for selling the PS3 mod PSJailbreak.
Sony's suit against Zoomba LDC accuses SHOPPSJAILBREAK.com of breaching Copyright laws by selling the device.
PSJailbreak allows users to bypass the PlayStation 3's copy protection and play games installed on the hard drive.
Sony is also accusing Zoomba of violating the Digital Millennium Copyright Act and of Trademark Infringement. It is seeking an injunction to block the sale of the device, as well as damages.
Sony succeeded in getting a temporary injunction, blocking the sale of PSJailbreak, in Australia.
The creators of the hack responded by saying this was "scare tactics" on Sony's part. The hackers have argued that the device contains no content that violates copyright and is therefore not illegal.
Sony's troubles piled up when it was revealed that the device had been cloned and imitators were now cropping up on the internet.
Reports have suggested that Sony is able to detect the PS3Jailbreak and its users, and will solve the issue with a firmware update, but the platform holder has not done so yet.