He can trade that. I traded one. Some people use them for more than piracy. The ONLY thing I do with my PSP, is develop games. I have NO illegal material on there. (I have 1 ROM, and it's Pokemon Gold, a game that I own.)
It doesn't matter if you don't intend to use it for piracy. The fact that it can allow you to pirate is reason enough why it isn't allowed around here.
I'm not against Custom Firmware on anyone's PSP, but the rules are the rules.