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US Government goes after console mod chip makers

1 August 2007 15:47 by Andre "DVDBack23" Yoskowitz | 116 comments

US Government goes after console mod chip makers This morning, the US Government announced it has executed 32 search warrants in 16 different states in an effort to crackdown on console mod chip makers, claiming the chips cause the video game industry billions of dollars in lost revenue each year.

The warrants were out for companies that produce mod chips, which effectively bypass any copyright protection, allowing gamers to play downloaded or copied games. To date, there is no mod chip for the Sony PlayStation 3 but there are for the PS2, Microsoft Xbox, Nintendo Wii and there are hacked DVD drives for the Xbox 360.

The warrants were the result of investigations by Immigrations and Customs Enforcement (ICE). According to ICE, seizures of pirated works increased by 83 percent in 2006.

"Illicit devices like the ones targeted today are created with one purpose in mind, subverting copyright protections,"
ICE Homeland Security assistant secretary Julie Myers said. "These crimes cost legitimate businesses billions of dollars annually and facilitate multiple other layers of criminality, such as smuggling, software piracy and money laundering."

The US Chamber of Commerce has made a very bold statement, claiming that counterfeiting and piracy, of all types, cost the US economy over $200 billion each year.

Microsoft supported the warrants of course, and said so in a prepared statement. "Microsoft applauds ICE for its effort to reduce piracy and protect the intellectual property of Microsoft and its industry partners," it said.

"This is an important step in the continuing fight against piracy and the threat it presents to the global economy and consumers throughout the world."


Source:
BetaNews


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    Discuss this article!  There are more user comments available, read them here
    ZippyDSM (AfterDawn Addict) 6 August 2007 12:58 Send private message to this user   
    the US and Jp get price breaks for being preferred,while other places get highjacked by 30-60% ontop of what we get in the US,even if taxes are part of that 30-60% it still dose not add up.

    As always I am disgusted with corporate greed, for me its simple,profit is ok profiteering (making more than 2X profit) is bad for capitalism and the world.
    Crazykid3 (Member) 7 August 2007 14:11 Send private message to this user   
    BULL****! This entire thing is about money, money, money! They can't stand that they're losing money. They spend 2.5 million at most for a huge hit, make 2.5 billion off of it and ***** about a couple million dollars worth of illegal copies! Corporate Communists!!!!!
    ZippyDSM (AfterDawn Addict) 7 August 2007 14:35 Send private message to this user   
    Originally posted by Crazykid3:
    BULL****! This entire thing is about money, money, money! They can't stand that they're losing money. They spend 2.5 million at most for a huge hit, make 2.5 billion off of it and ***** about a couple million dollars worth of illegal copies! Corporate Communists!!!!!

    Fascist would be more correct,Communist is give everything to the people but take away their rights.

    What they are doing is stifling innovation and consuemrs rights,once they are removed from capitalism you have a stagnant climate where the current industry is protected at the cost of meaningful growth and consumer rights.
    zedro (Newbie) 7 August 2007 16:31 Send private message to this user   
    I shutter to think what’s next. If they somehow got control of the “piracy” and region control and locked it completely, which at it current state is not possible, but if they could, people would be at the mercy of the companies. They price games in a way people don’t “really” feel there getting ripped off. They say prices they charge now are high because of piracy (And I think they classify bypassing region control as piracy or else they wouldn’t lock it). But if they got rid of it completely, do you really think the price would go down? If anything, it would go up because no one would be able to get it any where else.
    hursty (AfterDawn Addict) 9 August 2007 8:57 Send private message to this user   
    Well what can one say,its all bad
    Sites are dropping like flies
    Teammodders is down (a site of which i was there at the beginning),team Xecuter is no longer supplying,and now i here norcalmods is closed
    thats probaly the tip of the iceberg

    Having said that,i have never copied anything in my life,so at least i'm safe here in the u.k (for now)



    join me,and other members here,on the "unofficial" afterdawn live chat channel ->
    http://www.adbuddies.org/java/
    ss6phil (Member) 9 August 2007 12:42 Send private message to this user   
    but to be honest this isnt going to stop this at all, when companies announce that their console cannot be chipped and that is when hackers step in and prove them wrong. the thing is locking the regions have created this problem in that since im living in the uk it is hard to get hold of games like for example chrono trigger on the ps1 just because they decided they wont release it over here and the only solution is to import and make sure the console is able to play it really. to play games which other countries cant get hold of but being told that the game is good is annoying to players all across the world since they wont have the experience of the game. i agree with modding in that case just to make your console multi regional.
    hursty (AfterDawn Addict) 10 August 2007 0:13 Send private message to this user   
    I agree that consoles/games should be region free,but that,in my opinion is not the reason why most user's mod there consoles
    The main reason,plain and simple,is so they can boot copied games
    Theres no getting away from that fact,no matter what anybody says.
    Yes,some say they want to preserve there original,and my dads the pope,....but lets get real....

    We all knew this would come one day,and we hope it will blow over,because losing teammodders was a blow to me and a lot of other members there who have been there from the beginning,even before the TM site
    People have just got to hold tight,and remember one thing

    Piracy will never be stopped
    It may be tamed,and they may think it will be under control to a certain extent.
    But it will never cease,there is just too much money involved.

    Regards

    Hursty
    Ofnir1 (Senior Member) 12 August 2007 19:47 Send private message to this user   
    Thats bullocks that Teammodders.com got taken down, along with all the other sites. I've heard that TM was a great forum too, just never got around to registering there, though I wish I had.
    hursty (AfterDawn Addict) 13 August 2007 6:45 Send private message to this user   
    Just for the record tho TM was taken offline by choice
    Ofnir1 (Senior Member) 13 August 2007 12:36 Send private message to this user   
    Oh ok, so they weren't forced then.
    Bremen (Inactive) 13 August 2007 18:05 Send private message to this user   
    i could quote someone but everyones points are good

    only thing i can say is gay gay gay gay gay


    i lost a M$ live account due to a modded xbox..... b/c it was on the same network as my other box (both on at the same time) oh well theres 50$ of the 2 billion they lose back
    Goomba314 (Newbie) 15 August 2007 15:20 Send private message to this user   
    fucking feds
    jay317 (Newbie) 15 August 2007 23:48 Send private message to this user   
    Let's me start with some info concerning the DMCA. U.S. Copyright laws permit making a "backup" copy of computer programs for archival purposes under section 117(2) as stated on the ESA's website ESA FAQ's on Anti-Piracy . Now with that being said aren't the manufactures’ of game console infringing upon our rights, as a consumer, to play a legal backup copy of a game, which is governed by the DMCA, by designing their console to block any copied games, which drives us to purchase a mod-chip to allow us to play our legal backups? Sounds to me like a catch-22.

    This message has been edited since posting. Last time this message was edited on 15 August 2007 23:50

    ZippyDSM (AfterDawn Addict) 15 August 2007 23:51 Send private message to this user   
    Originally posted by jay317:
    Let's me start with some info concerning the DMCA. U.S. Copyright laws permit making a "backup" copy of computer programs for archival purposes under section 117(2) as stated on the ESA's website ESA FAQ's on Anti-Piracy . Now with that being said aren't the manufactures’ of game console infringing upon our rights, as a consumer, to play a legal backup copy of a game, which is governed by the DMCA, by designing their console to block any copied games, which drives us to purchase a mod-chip to allow us to play our legal backups? Sounds to me like a catch-22.
    There is no "fair use" in the corporate scheme of things ^^
    emugamer (Member) 16 August 2007 1:34 Send private message to this user   
    Originally posted by jay317:
    Let's me start with some info concerning the DMCA. U.S. Copyright laws permit making a "backup" copy of computer programs for archival purposes under section 117(2) as stated on the ESA's website ESA FAQ's on Anti-Piracy . Now with that being said aren't the manufactures’ of game console infringing upon our rights, as a consumer, to play a legal backup copy of a game, which is governed by the DMCA, by designing their console to block any copied games, which drives us to purchase a mod-chip to allow us to play our legal backups? Sounds to me like a catch-22.
    It's fair use until the CEO's want a new yacht.
    ZippyDSM (AfterDawn Addict) 16 August 2007 1:40 Send private message to this user   
    Originally posted by emugamer:
    Originally posted by jay317:
    Let's me start with some info concerning the DMCA. U.S. Copyright laws permit making a "backup" copy of computer programs for archival purposes under section 117(2) as stated on the ESA's website ESA FAQ's on Anti-Piracy . Now with that being said aren't the manufactures’ of game console infringing upon our rights, as a consumer, to play a legal backup copy of a game, which is governed by the DMCA, by designing their console to block any copied games, which drives us to purchase a mod-chip to allow us to play our legal backups? Sounds to me like a catch-22.
    It's fair use until the CEO's want a new yacht.
    you mean their platinum gold cocaine its the only way to explain their shenanigan's.



    FIGHT THE M.A.F.I.A.A.
    yojacks (Junior Member) 21 August 2007 18:18 Send private message to this user   
    THIS SUCKS i was like one or two days away from getting my console shipped to me until this bullshit happens im pretty pissed at the government but i think that ICE is starting to back off as the modchip bust is not on their front page anymore now their looking for a drug trafficker by te name of luis albeiro and i just believe it was on big BRIBE from nintendo,ms and sony to go after modders.but the dumb part is that they went after modders and not chip makers.
    plazma247 (Junior Member) 22 August 2007 1:02 Send private message to this user   
    hehe simple math when your cooking the figures theres more moders than chip makes, which means you have a higher probablity of catching and convicting a modder.

    So logic says go after the modders as the figures look better.
    yojacks (Junior Member) 25 August 2007 18:13 Send private message to this user   
    more modders will still rise they'll just keep a lower profile and modders wwould be useless without chips that the chip makers make like diveneo but since diveneo is in a country where modchips are legal and since diveneo is a big company and not some guy with a soldering iron they have the ability to fight back and sony can't do shit to them even though they still tried and nothing happened as of late and they are one of the biggest chip makers out there.
    ZippyDSM (AfterDawn Addict) 25 August 2007 18:16 Send private message to this user   
    Originally posted by yojacks:
    more modders will still rise they'll just keep a lower profile and modders wwould be useless without chips that the chip makers make like diveneo but since diveneo is in a country where modchips are legal and since diveneo is a big company and not some guy with a soldering iron they have the ability to fight back and sony can't do shit to them even though they still tried and nothing happened as of late and they are one of the biggest chip makers out there.

    Link sang fought back alright,sorry if sony sues anyone in 3 or 4 countries at the same time they are as good as dead 0-o



    FIGHT THE M.A.F.I.A.A.
    yojacks (Junior Member) 25 August 2007 19:03 Send private message to this user   
    the only thing i think that shouldn't be hacked at the moment is the ps3.if the ps3 gets hacked in a way where backupgames can be played that'll be a real big blow to sony as there a;ready having trouble getting developers to make games for them and if people can acquire those ga,es for free alot of game will go multi-platform or not for the ps3 at all.the ps2 is basically old new and they shouldn't be worriedanymore about modchips for the ps2 it's been fully hacked and there is no stopping it now especially now that the freevast team at www.freevast.biz is making a free memory card exploit that'll work like vast and will be basically a free modchip. man i can't see how that turns out.
    ZippyDSM (AfterDawn Addict) 25 August 2007 19:12 Send private message to this user   
    Originally posted by yojacks:
    the only thing i think that shouldn't be hacked at the moment is the ps3.if the ps3 gets hacked in a way where backupgames can be played that'll be a real big blow to sony as there a;ready having trouble getting developers to make games for them and if people can acquire those ga,es for free alot of game will go multi-platform or not for the ps3 at all.the ps2 is basically old new and they shouldn't be worriedanymore about modchips for the ps2 it's been fully hacked and there is no stopping it now especially now that the freevast team at www.freevast.biz is making a free memory card exploit that'll work like vast and will be basically a free modchip. man i can't see how that turns out.
    It wont matter public presepction is more important,the PC is the great evil its the most easiest thing to pirate (BS 360 is easier,if I had a 360 ,I could run a copy of Bioshock from day 1,the PC version will take a few more days to get hacked) the ps3 is a beast (codeing,price) and in general is selling poorly,they actually need pirtiing more in order to push more merchandise.



    FIGHT THE M.A.F.I.A.A.
    yojacks (Junior Member) 26 August 2007 6:27 Send private message to this user   
    that is true though if a hack did come out to allow backup games more people would buy due to that that's maybe one of the reasons the ps2 is selling like it is now.but wat makes it so hard to hack a ps3
    Oxadillia (Inactive) 27 September 2007 12:15 Send private message to this user   
    In my opinion, how exactly could they know how much they loose, I mean, firstly, who do they get these facts from (they would have to ask most of the people with modded consoles, which alone is close to impossible) and then they would have to differentiate between the probably small community that do use it for pirating, and the others who use it for homebrew, or backups of the original game. They probably took a fact then made an "estimate" that ended up blown out of proportion, mainly to add effect to the ludicrous comments that they have said.
    XdjxedxdX (Member) 19 December 2007 20:29 Send private message to this user   
    software piracy and money laundering."

    Um how the hell do you launder money selling modchips???
    ZippyDSM (AfterDawn Addict) 20 December 2007 0:42 Send private message to this user   
    Oxadillia/XdjxedxdX

    It dose not matter what the truth is, they can make it illeagle just because they have the power to try to do it.
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