The Windows Phone 7DRM 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.
“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.”