Feds Go After Modchip Makers

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The alleged sale and distribution of illegal modification chips and copyright circumvention devices for the popular consoles and others included 32 search warrants in 16 states, said the U.S. Immigration and Customs Enforcement. ICE declined to release the names of those targeted but said they are allegedly responsible for importing, installing, selling and distributing foreign-made devices smuggled into the U.S. Illegal chips and other devices used on gaming consoles violate the Digital Millennium Copyright Act of 1998. Sales of counterfeit or illegally obtained games costs the industry about $3 billion a year globally, not including Internet piracy, estimates the Entertainment Software Association trade group.