We’re going to keep this brief, and not too specific to avoid perhaps aiding piracy, but we feel that you need to know. The Windows Phone 7 DRM has been cracked, apparently in less than 6 hours of development time.
An application has been built, but not released, that compromises the security measures and allows for apps to be stolen and used for free. Microsoft has been contacted over the matter.
If the application that breaks the DRM and allows for free downloading of apps is not going to be released, why worry? Because it can be done. Easily. It could be remade by someone else tomorrow. In the words of WPcentral:
[The] program can successfully pull any application from the Marketplace, remove the security and deploy to an unlocked Windows Phone with literally a push of a button. Alternatively, you could just saved the cracked XAP file to your hard drive.
[The tool can be used] to download any app from the Marketplace.
That is all that we are going to say on the matter. We leave it to Microsoft to fix the problem and restore solvency to the app marketplace. Windows Phone 7 is just getting its sea legs and can ill afford such a negative blow to potential developer morale at this point in time.