Developers have found a vulnerability in the Windows Phone Marketplace DRM software which makes it possible to download paid apps from the marketplace for free, crack the security and either install the app on a phone or distribute the cracked app.
The folks at WP Central have put together a video showing how the security can be bypassed — but the tools will not be made available to the public. Right now this is just a proof of concept and the site has been in contact with Microsoft in hopes of tightening up security to make it harder to crack security.
While some folks might be happy to find out how easy it is to bypass the DRM used by the Marketplace, mobile app developers expect to be paid for their work and if piracy becomes too rampant for any mobile platform, we might find that big name (and some independent) developers shy away from releasing apps for that platform.
You can check out the video after the break.