Earlier this week a proof-of-concept program was demonstrated in response to a controversial report published at XDA (since pulled) which gleaned publicly available information to outline how the WP7 Marketplace could be cracked.
The proof-of-concept program FreeMarketplace created by a “white hat” developer has provided WPCentral with a proof-of-concept program that can successfully use any Windows Phone 7, remove the security and install it on to an unlocked Windows Phone with literally a push of a button.
Microsoft have already been made aware of the security breach and is probably working o something to correct the problem already. However in the mean time Tobias the developer who created the FreeMarketplace program already thinks he has an interim solution for developers that would at least slow down any pirates disabling the Windows Phone 7 app security using the automated process.
More developer information is available from Getting a more secure Windows Phone 7 app