32 federal warrants executed towards modchip distributors/importers/installers

[purbeast0]

Text

ICE partners with industry to launch largest enforcement action of its kind targeting importers and distributors of illegal devices used to circumvent anti-piracy technology in top gaming consoles
32 search warrants executed in nationwide intellectual property rights investigation
WASHINGTON, DC - U.S. Immigration and Customs Enforcement (ICE) agents from 22 offices assisted by representatives of the electronic industry today executed 32 federal search warrants in 16 states as part of an investigation into the alleged sale and distribution of illegal modification chips and disc copyright circumvention devices. This investigation represents the largest national enforcement action of its kind targeting this type of illegal activity.

The search warrants were executed at businesses, storefronts, and residences located in California, Florida, Hawaii, Idaho, Illinois, Maryland, Massachusetts, Michigan, Minnesota, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, and Wisconsin at locations associated with subjects who are allegedly involved in the direct importation, installation, sale, and distribution of the devices that are of foreign manufacture and smuggled into the United States.

The modification chips and circumvention devices allow users to play illegally obtained, pirated and/or counterfeit software on video game consoles including Sony's Playstation 2, Microsoft's XBOX and XBOX 360, and Nintendo's Wii. Modification chips and swap discs for gaming consoles violate laws under the Digital Millennium Copyright Act of 1998 (DMCA). According to the Entertainment Software Association (ESA), the makers of the gaming consoles, game developers, and others in the industry have incurred billions of dollars in losses worldwide due to sales lost to those selling counterfeit and pirated video games.

Counterfeiting and piracy is estimated to cost the U.S. economy between $200 billion and $250 billion annually and results in the loss of up to 750,000 jobs according to the U.S. Chamber of Commerce.

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

As the largest investigative arm of the Department of Homeland Security, ICE plays a leading role in targeting criminal organizations responsible for producing, smuggling and distributing counterfeit products. ICE investigations focus on keeping counterfeit and pirated products off U.S. streets, and on dismantling the criminal organizations behind this illegal activity. In fiscal year 2006, U.S. Customs and Border Protection (CBP) and ICE marked an 83 percent increase in the number of intellectual property rights (IPR) seizures, including 14,675 seizures of counterfeit goods worth more than $155 million, a 67 percent increase from the year before. ICE investigations resulted in 219 arrests, 134 indictments and 170 convictions in intellectual property rights violations.

Between fiscal years 2002 and 2006, ICE agents arrested more than 700 individuals for IPR violations and dismantled several large scale criminal organizations that distributed counterfeit merchandise to nations around the globe. At the same time, ICE investigations into these networks resulted in 449 criminal indictments and 425 convictions. Together, ICE and CBP seized more than $750 million worth of counterfeit goods from fiscal year 1998 through fiscal year 2006.

This enforcement action is the result of a year long investigation conducted by the ICE Office of the Assistant Special Agent in Charge, Cleveland, Ohio.

The names of those targeted, addresses and case specifics are not releasable at this time.

The investigation is being coordinated with the U.S. Attorney's Office for the Northern District of Ohio in Cleveland and assisted by the Department of Justice Computer Crimes and Intellectual Property Section (CCIPS). In addition, ICE has received valuable technical assistance during this investigation from ESA and other industry members.

I have known the guy who runs modchipman.com for over 10 years now and I haven't been able to contact him all day, so I am assuming he was one of these places that got a warrant executed to

 

[MustISO]

BOOOOO!

 

[DaveSimmons]

Most people buying these chips want to pirate, not play imported games or load their own games from HD, so I don't have any sympathy for the chip mongers.

 

[Kaido]

Originally posted by: DaveSimmons
Most people buying these chips want to pirate, not play imported games or load their own games from HD, so I don't have any sympathy for the chip mongers.

Not all chips are used for pirating games though. Just look at Xbox Media Center - one of the greatest media center applications ever created.

 

[blurredvision]

Originally posted by: Kaido

Originally posted by: DaveSimmons
Most people buying these chips want to pirate, not play imported games or load their own games from HD, so I don't have any sympathy for the chip mongers.

Not all chips are used for pirating games though. Just look at Xbox Media Center - one of the greatest media center applications ever created.

That was created just so people could neatly organize their pirated music and movies .

 

[yowolabi]

It is beyond insane that it's illegal to modify hardware that I own. If the problem is people selling counterfeit games, than go after the counterfeit game-sellers. Not the people that simply allow you to use your hardware as you like.

 

[DaveSimmons]

It's not necessarily illegal for you to install a mod chip yourself, it's illegal for someone else to make and sell the chips.

The chip mongers were raided, not joe customers.

Also, these chips are (mostly) used to allow people to pirate games themselves (rent & load or burn copies) not by counterfeit game-sellers.

 

[lupi]

<comment reserved for when joe chipbuyers start to get arrested from recovered records from joe chipmaker>

 

[herkulease]

Originally posted by: DaveSimmons
It's not necessarily illegal for you to install a mod chip yourself, it's illegal for someone else to make and sell the chips.

The chip mongers were raided, not joe customers.

Also, these chips are (mostly) used to allow people to pirate games themselves (rent & load or burn copies) not by counterfeit game-sellers.

I'm sure they took databases/emails etc. they could easily go after customers also. I remember directv's aggressive stance. they went after anyone who bought smart card readers, they were all accuse of use them to steal directv service. even though smart card readers have legitmate use.

 

[Queasy]

Isn't this the first time they've gone after mod chip makers and suppliers? First time I can recall anyways. They usually go after the ones selling boxes with pirated software on them already.

 

[BD2003]

Originally posted by: Queasy
Isn't this the first time they've gone after mod chip makers and suppliers? First time I can recall anyways. They usually go after the ones selling boxes with pirated software on them already.

Nah, definitely not the first time...I've heard of something like this before, just not on this scale.

 

[TallBill]

Counterfeiting and piracy is estimated to cost the U.S. economy between $200 billion and $250 billion annually and results in the loss of up to 750,000 jobs according to the U.S. Chamber of Commerce.

lol, counterfeiting creates jobs. It doesn't take any away.

 

[JackBurton]

Have I been living under a rock? I didn't even know mod chips were illegal? WTF?

 

[RaiderJ]

Team Modders (where I'm a moderator) and NorCal Mods are both down, for good I'll bet. I haven't seen any indication that they're going after anyone but the website operators. To me, modifying your own console is one thing, but running a business based on it is just asking for trouble.

 

[RaiderJ]

Originally posted by: herkulease

Originally posted by: DaveSimmons
It's not necessarily illegal for you to install a mod chip yourself, it's illegal for someone else to make and sell the chips.

The chip mongers were raided, not joe customers.

Also, these chips are (mostly) used to allow people to pirate games themselves (rent & load or burn copies) not by counterfeit game-sellers.

I'm sure they took databases/emails etc. they could easily go after customers also. I remember directv's aggressive stance. they went after anyone who bought smart card readers, they were all accuse of use them to steal directv service. even though smart card readers have legitmate use.

We'll see. I haven't heard anything yet, and I know my email address is on there somewhere!

 

[A5]

Originally posted by: JackBurton
Have I been living under a rock? I didn't even know mod chips were illegal? WTF?

Any device that can possibly be used to circumvent copyright is illegal under the DMCA. If there was a modchip that didn't allow for "backups" to be played, but still added features, it may be in a gray area...but it would never sell.

 

[Kaido]

Originally posted by: yowolabi
It is beyond insane that it's illegal to modify hardware that I own. If the problem is people selling counterfeit games, than go after the counterfeit game-sellers. Not the people that simply allow you to use your hardware as you like.

The very first game I bought for my Xbox 360 was Far Cry. The second time loading up the game, it ate the disc. Completely ruined my new game. I sure wish I had been able to make a backup copy instead of being out the money I paid for the game

 

[JackBurton]

Originally posted by: Kaido

Originally posted by: yowolabi
It is beyond insane that it's illegal to modify hardware that I own. If the problem is people selling counterfeit games, than go after the counterfeit game-sellers. Not the people that simply allow you to use your hardware as you like.

The very first game I bought for my Xbox 360 was Far Cry. The second time loading up the game, it ate the disc. Completely ruined my new game. I sure wish I had been able to make a backup copy instead of being out the money I paid for the game

If they are going to pass BS laws like the DMCA, then they also need to amend them stating, "if a console destroys a game, the manufacturer of that game will need to replace it for free within a weeks times." We'll see how that goes.

 

[Thraxen]

Originally posted by: A5

Originally posted by: JackBurton
Have I been living under a rock? I didn't even know mod chips were illegal? WTF?

Any device that can possibly be used to circumvent copyright is illegal under the DMCA. If there was a modchip that didn't allow for "backups" to be played, but still added features, it may be in a gray area...but it would never sell.

But wouldn't that include PCs themselves? But like PCs, it's really the software that circumvents the protection... in this case, the firmware on the chip. I really think modchips themselves should be perfectly legal, even under DMCA.

 

[Dacalo]

Originally posted by: Kaido

Originally posted by: yowolabi
It is beyond insane that it's illegal to modify hardware that I own. If the problem is people selling counterfeit games, than go after the counterfeit game-sellers. Not the people that simply allow you to use your hardware as you like.

The very first game I bought for my Xbox 360 was Far Cry. The second time loading up the game, it ate the disc. Completely ruined my new game. I sure wish I had been able to make a backup copy instead of being out the money I paid for the game

That's hardware failure, not an inherent problem of the console. Did you end up getting a new one from MS?

 

[mugs]

Originally posted by: Dacalo

Originally posted by: Kaido

Originally posted by: yowolabi
It is beyond insane that it's illegal to modify hardware that I own. If the problem is people selling counterfeit games, than go after the counterfeit game-sellers. Not the people that simply allow you to use your hardware as you like.

The very first game I bought for my Xbox 360 was Far Cry. The second time loading up the game, it ate the disc. Completely ruined my new game. I sure wish I had been able to make a backup copy instead of being out the money I paid for the game

That's hardware failure, not an inherent problem of the console. Did you end up getting a new one from MS?

What's your point? Discs get damaged. Shit happens. When you pay $60 for a disc and you could make a backup for $.15, why wouldn't you want to do that?

 

[Modelworks]

Nice to see the department of homeland security doing its intended purpose.
Guess the modchip dealers were "terrorising" the console makers !

 

[KlokWyze]

Originally posted by: Modelworks
Nice to see the department of homeland security doing its intended purpose.
Guess the modchip dealers were "terrorising" the console makers !

I think Homeland security is doing the job it was intended to do. no surprise there, or did you actually believe some politicians?

Really though, id you base a business of this kinda shit you're just asking for it or can't really complain if you get busted. As someone said earlier though, how long till the end user is directly targeted?

You should be legally entitled to make as many backups as you want as long as you don't share/sell them.

 

[Kaido]

Raid casualty comes forward to tell his story

 

[Kaido]

Originally posted by: mugs

Originally posted by: Dacalo

Originally posted by: Kaido

Originally posted by: yowolabi
It is beyond insane that it's illegal to modify hardware that I own. If the problem is people selling counterfeit games, than go after the counterfeit game-sellers. Not the people that simply allow you to use your hardware as you like.

The very first game I bought for my Xbox 360 was Far Cry. The second time loading up the game, it ate the disc. Completely ruined my new game. I sure wish I had been able to make a backup copy instead of being out the money I paid for the game

That's hardware failure, not an inherent problem of the console. Did you end up getting a new one from MS?

What's your point? Discs get damaged. Shit happens. When you pay $60 for a disc and you could make a backup for $.15, why wouldn't you want to do that?

Exactly. I'm hoping in the future gaming companies will adopt an online download service for consoles similar to Steam. For example, all of my original Half-Life game discs are scratched up so badly they don't even read in my optical drive, but I can simply hop online, type in my user/pass, and download them straight from Steam. 100% legal, 100% legit, no worries about my investment into gaming stuff. Some of you might whine about taking better care of your stuff or that gaming isn't an investment, but try justifying a $60 game to your wife or having your niece come over and chew up your game so badly that it won't play ever again