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While actual legal issues still haven't become clear (in fact, the case seems pretty weak), VintFalken points to one possible way that the poseballs may have fallen into someone else's hands.

It's all fun and games until unauthorized people start playing with your poseballs.

Vint points to this comment:

Well, in the case of the SexGen beds, as reported here in Second Life Insider, there’s some indication that Cattaneo, or whoever supplied him with the beds for sale, may have used D35V-bot (also known as “Desu-bot,” a variant of Copybot) to make the actual copy. This bot allegedly exploits a security hole in SL to copy scripts, which was one of the things Copybot didn’t do.

Right. The premise of the bed-copying-bot seems to be a little... dangerous. If it is true, then it sounds like a definite exploit - scripts are supposed to be server side, and the code is supposed to be only available to client side for editing if permissions are given to do so. If the bot can somehow bypass those permissions, it is possible that the bed would be copied.

Take a moment and a breath - a deep one. If this is true - why target SexGen beds? Sure, they make money - but there are plenty of other things out there which do as well, so why limit the use like this? It almost fits, but one has to wonder that if this alleged bot existed and were used - wouldn't it be used on other things as well?

There are so many If statements running around I feel like I'm writing some BASIC code on a Vic-20. I think [w:Linden Lab] will have to make an announcement soon, but experience has taught me that timely interventions from their weblog are uncommon.

On another note, does anyone think that there is a Linden Lab politburo which oks whether things are posted or not? Truth be told, the community can probably deal with 'oops' and corrections better than a considerable lack of information on something accused of being a blog...