US prosecutors have dropped the first-ever jury case under the Digital Millennium Copyright Act dealing with modding game consoles.
The defendant allegedly modified XBOX360 consoles so that they could run pirated games, and was charged under the DMCA's anti-circumvention provisions. Anti-circumvention laws prohibit bypassing technological protection measures designed to protect copyrighted materials (and are one of the most controversial aspects of Canada's current proposed copyright reforms).
Due to problems in their case, government prosecutors decided to drop the case for reasons of "fairness and justice" after just two days of trial.
Coverage at Wired.