Nintendo-Scene

According to CBS11tv.com, a southern California college student has been arrested on allegations of bypassing the DMCA by installing modchips into consoles.

A Southern California college student has been arrested on federal charges that he illegally modified video game consoles to enable the machines to play pirated video games.

The U.S. Attorney’s Office says 27-year-old Matthew Crippen was released Monday night after posting $5,000 bond.

The California State University, Fullerton student who lives in Anaheim is accused of modifying Xbox, PlayStation and Wii consoles in violation of the Digital Millennium Copyright Act.

Immigration and Customs Enforcement agents got a tip from the Entertainment Software Association and searched Crippen’s home in May.

He was indicted on two counts by a federal grand jury. Crippen faces 10 years in prison if convicted and is scheduled for arraignment on Aug. 10.

Attempts to reach Crippen for comment were unsuccessful.

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TehSkeen is reporting that a law in Hong Kong has just gone into effect that makes Modchips as well as the Installation of Modchips Illegal.

From the Explanation:

Examples of the sorts of activities that would attract
civil liability:
…
• a person offering a service to modify game consoles or
selling mod chips for insertion into digital game machines so
as to enable others to play pirated computer games
…
To combat the rampant sale of modified game consoles and other
tools which help the public to pirate copyright works, we propose
to criminalize the making, importation or export for sale,
or dealing in any circumvention tools. We will also criminalize
the commercial provision of circumvention services.

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It would seem that the ESA has shut down Team Cyclop’s main website cyclowiz.com instead of the normal main page there is a lengthy explanation of the closure in plain text. Basically they were shut down for offering the sale of copyright circumvention devices; the specific page referenced as the reason for the take down was the product and order page for Team Cyclops’ Wii Modchip: CycloWiz.

From the take down notice:

The circumvention devices appearing on, or made available through, the
through the above-listed IP address are listed and/or identified thereon
by depiction, description, and/or name (the circumvention devices are
hereinafter referred to as “Infringing Material.”)

Based on the information at its disposal, ESA has a good faith belief
that the Infringing Material is not authorized by the copyright owner,
any licensee or agent thereof, or the law.

Accordingly, ESA hereby requests Hosted Solutions, LLC to immediately do
the following:

1. Notify the account holder of the Infringing Material.
2. Remove, or disable access to, the Infringing Material detailed above.
3. Take appropriate action against the account holder under your Abuse Policy/Terms of Service Agreement, including termination of a repeat offender.

Interesting is that both cyclopswiz.com and cyclopsds.com websites are still up and running, likely because they simply offered information about the chips rather than offering them for sale.

UPDATE: Seeing as there seems to be some confusion in this. The site that was shut down was one of Team Cyclop’s main resellers NOT Team Cyclop’s own website.

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Both Nintendo and the ESA have made press release about the recent ICE Raids on modchip installers.

The ESA Press Release:

The Entertainment Software Association (ESA) today commended U.S. law enforcement agents and prosecutors’ work in undertaking the nation’s first and largest anti-piracy raid of its kind. The action, code-named “Operation Tangled Web,” targeted retailers selling modification chips through the Internet for the Microsoft, Nintendo and Sony game console systems. Law enforcement executed 32 search warrants in more than 20 localities across the country within a 24-hour period.

“Plain and simple, selling and distributing products to illegally bypass game consoles’ piracy protections is a crime with real-life consequences. This is not a game; we’re talking jail time. Enforcement initiatives of this scope send a clear message to both the public and pirate community that this illegal activity will not be tolerated,” said Michael D. Gallagher, president of ESA, the trade association representing U.S. computer and video game publishers. “We commend Immigration and Customs Enforcement (ICE), the U.S. Department of Justice, and the participating U.S. Attorneys’ offices for targeting individuals and groups selling ‘mod-chips’ and pirated game software.”

Modification chips or “mod-chips” are typically installed in video game console systems to circumvent the technological protection measures and enable the user to play pirated game software. These chips, as well as other circumvention devices, are illegal under the Digital Millennium Copyright Act (DMCA).

“As an industry, we protect our intellectual property, encourage our government to crack down on those who break the law, and urge other governments to take similar action against video game pirates. Yearly worldwide piracy costs total over $3 billion and it impinges on businesses and employees who create, develop, and distribute innovative products,” said Gallagher. “The ESA will work with federal law enforcement to ensure that those engaged in the illegal trade of circumvention devices are prosecuted to the fullest extent of the law.”

The Nintendo Press Release:

Today U.S. Immigrations and Customs Enforcement agents executed 32 federal search warrants in 16 states as part of an investigation into the alleged sale and distribution of illegal modification chips for various video game consoles, including Nintendo’s Wii‚Ñ¢ home video game system. The mod chips designed for the Wii console circumvent the security embedded in the hardware and allow users to play counterfeit Wii software.

This Immigrations and Customs Enforcement investigation represents the largest national enforcement action of its kind targeting video game piracy. Nintendo has worked closely with this branch of the Department of Homeland Security, and fully supports its actions and other investigations currently underway.

“Nintendo and its developers and publishers lost an estimated $762 million in sales in 2006 due to piracy of its products,” said Jodi Daugherty, Nintendo of America’s senior director of anti-piracy. “Nintendo’s anti-piracy team works closely with law enforcement officials worldwide to seize mod chips and counterfeit software. Since April, Nintendo has seized more than 91,000 counterfeit Wii discs globally.”

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Earlier today U.S. Immigration and Customs Enforcement (ICE) Raided 32 different modchip installers and distributors across 16 States in the US. Assisted by “representatives of the electronic industry” numerous installers and re-sellers had their shops raided and equipment confiscated as evidence. The raids were performed quasi-simultaneously so that word would not get out and according to Nintendo-Scene sources many of the shops were “clean”, meaning they did not distribute any pirated material at all. If this is true then it means these recent raids differ from previous occurrences of DMCA enforcement where only installers offering pirated material were targeted. (more…)

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Nintendo of Europe has issued a statement, regarding Wii mod-chips.

Perhaps you are not familiar with mod chips, but nevertheless we would like to draw your attention to some important information.
 
Modification microchips (mod chips) circumvent the security embedded into Nintendo’s products. To install a mod chip into a Nintendo hardware system, it is necessary to dismantle the product and, in some instances, remove components.
 
The use of mod chips voids the manufacturer’s warranty. In addition, the installation of a mod chip can damage the functionality of a Nintendo console, sometimes rendering it incapable of repair. Mod chips have been adjudicated to be illegal in various countries around the world, including the Unites States, the United Kingdom and Hong Kong. Most European countries have also already adopted laws prohibiting the circumvention of technological measures for copyright protection. People caught installing or selling mod chips may be subject to criminal charges.

Everyone here should be aware of the laws in their respective country. I don’t think Nintendo is saying anything that anyone here shouldn’t already know. But, they don’t make statements regarding mod-chips, like this, very often.

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