Last I heard, I think the ultra-right was trying to get that ruling reversed.

There is no such thing as a legal contract that breaks the law. But, a contract often consists of one or more of the parties promising not to exercise what would otherwise be a legal right.

For instance:

Murder contract: Err... Not legal and binding.

Sharen rubs her husband's feet every day contract: Yes, binding, so long as a judge doesn't decide it's ridiculously unfair, i.e. his feet are deadly, or it is slavery (you're receiving nothing in return).

Because the AMG EULA doesn't break any laws, it's like any other contract. If it is breached, civil litigation can be the result. But, nobody could go to jail for posing the digital Dutch bunny in the Russian splits over a cross , if that's what you're wondering, because bad taste isn't illegal.