That ban comes alongside new research from lobby group Intellectual Property Awareness Foundation, which says nearly half of Australian internet users are pirates of copyrighted material, while 24% are "pirates and proud of it". The group intends to use the research as a basis for a nation-wide education campaign.
According to Federal Court documents lodged late last week, the group of retailers includes OzModChips, operated by Ryan Caruana, along with Global Solutions International trading as Quantronics and Ken Tolcher trading as Mod Supplier.
The companies have all been banned from importing, distributing, offering or providing anyone with the "jailbreak" devices, which are actually USB sticks inserted into the PS3 console. The method allows users to play pirated or unauthorised games through a special type of software, similar to the iPhone "jailbreak" which allows users to install and use unofficial apps.
The hearing was scheduled for this morning in Melbourne, where Sony was expected to push for the ban to be expended.
However, the companies have said on their respective websites why they believe the ban to be unwarranted, saying an extended ban is "unlikely".
"This will affect everyone that plans to buy such a device worldwide," OzMod said on its website.
"It already sets a dangerous precedent. Everyone that was using OtherOS, everyone that has had a faulty PS3 laser... and those interested in PS3 custom firmware and homebrew applications... we cannot do it alone."
Sony was contacted for comment, but no reply was received before publication.
The court battle comes as the issue of piracy is coming more and more prevalent among everyday users. It is now common to "mod" video game consoles in order to play pirated and unauthorised copies of games.
The lobby group Intellectual Property Awareness Foundation intends to embark on a two-year campaign to stop piracy. Its new research, conducted by Newspoll, argues 34% of Australians see piracy as theft, but they commit it anyway by buying or downloading illegal copies of films and television programs.
It also says over 50% of Australians committed piracy in 2009.
The IPAF, which is made up of several key figures in the entertainment industry including Foxtel, Hoyts, BlockBuster, TiVo, Paramount and Disney, says the campaign is designed to make a connection between people's actions and their beliefs.
"We found in our research that 72% of people think piracy is stealing or theft, but it also revealed one in three people actually commit piracy. We think that's like disagreeing with gambling and then going off to the casino every night," says IPAF chief executive Gail Grant.
"People aren't making the connection between actions and belief. There's a real grey area, and we think using a campaign that uses humour will be a way to make people more aware of what people are doing."
The campaign also comes as the Australian Federation Against Copyright Theft, (which shares some of its members with the IPAF), is battling iiNet in Federal Court. It argues the Perth-based ISP authorised copyright by allowing users to download illegal material, and wants repeat offenders' internet connections shut down.
This battle comes as after research conducted by News.com.au found pirates would buy entertainment legally if they had access to cheap alternatives. This is also part of the reason why iiNet is pursuing internet television service FetchTV, with The Australian reporting the company recorded a 95% take up rate.
However, Grant says pursuing alternatives is not part of IPAF's mandate. Instead, she says its members will be using its campaign to educate users on the connection between their actions and what actually constitutes piracy.
"We are all about gaining awareness of their actions, and gaining awareness of the value of the industry. We think people are basically honest and that when the connection is pointed out they will understand."
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