US Government goes after console mod chip makers

Andre Yoskowitz
1 Aug 2007 15:47

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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