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Man Jailed for Selling Modchips

JoeCotellese writes "The Register is reporting that the man accused of selling Mod chips for the X-Box was sentenced to five months imprisonment and a $28,500 fine." Yet another sad abuse of the DMCA.

37 of 445 comments (clear)

  1. Mod Chips != copyright infringement? by The+Real+Chrisjc · · Score: 5, Insightful

    This is an outrage! I mean, I have a chipped XBox here in the UK, and I use it to run XBox media player, and play a few (legitimate) games I have. At some point in the future, I will be running linux on it as well, as I can sit in bed and browse the web. Not as bad as it sounds :) I think DCMA is disgusting, it gives corporations the rights that they don't need!

    1. Re:Mod Chips != copyright infringement? by rf0 · · Score: 4, Insightful

      So what you are saying is that you bought a chip for a of hardware you paid for and own so you could use it how you wanted? Next you will be telling me that you have a video recorder and record whatever you want off TV. Or god forbid prehaps even a computer that you can do whatever you want on...

      Yes it is a stupid law and deserves to crash and burn

      Rus

    2. Re:Mod Chips != copyright infringement? by icemind · · Score: 5, Insightful

      Not true. The issue is the BIOS on these chips which is a hacked version of the MS one, that's what's illegal about it. You can legally hack and reverse engineer the XBox as much as you like unless I'm mistaken. The chip he was selling, Enigmah, came with the hacked BIOS preinstalled and was therefore illegal. Had he been selling one of these blank mod chips (which you then add a BIOS to yourself) I doubt they'd have had such a strong legal case against him.

  2. Cripes! by Frogking · · Score: 5, Funny

    It's getting to the point where selling drugs is less of a risk! Not that I would, but I suppose one could always market LSD as a modchip for your brain...

  3. hardware not license by BobRooney · · Score: 5, Insightful

    When you buy an Xbox you buy hardware. Circuit boards, microchips, a hard drive, a GPU, a CPU, RAM. You are not buying the same sort of thing when you buy software, where you are technically buying a license, not a disk with software on it.

    You should be able to modify any equipment you own without fear of prosecution because the effect of that modification could possibly, in certain specific circumstances, violate copyright laws.

    It's like arresting someone for putting a better engine in their car becuase "They might decide to speed", or worse, arresting the person who sold the performace parts.

    1. Re:hardware not license by Angry+White+Guy · · Score: 4, Insightful

      The console market is blurring the lines between property and licensing. Welcome to serfdom. You are now working for the Baron, living on the Baron's land.

      Have a nice life!

      --
      You think that I'm crazy, you should see this guy!
    2. Re:hardware not license by goldcd · · Score: 3, Informative

      The problem with most mod-chips is that they usually contain MS's copyrighted code - and therefore violate copyright law pretty much wherever they're sold. Only way around this currently is to sell them blank with the capability for the end user to load on whatever code we wants using his computer (e.g. Xecuter Pro) or sell them with an Open source Bios installed (e.g. Cromwell). The problem with the later is that it's currently pretty fiddly to swap it for the one you most probably want on your mod chip.

    3. Re:hardware not license by JaredOfEuropa · · Score: 5, Insightful

      *sigh*

      Where are the days of, say, the Commodore 64? That thing came with the freakin' schematics in the back of the manual, practically begging you to take a soldering iron to it and modify it in interesting ways.

      --
      If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
    4. Re:hardware not license by Chanc_Gorkon · · Score: 3, Interesting

      This is crap. This reminds me of the Netpliance iOpener debacle. They sold something that could be easily hacked and made to do something that it wasn't necessarily designed to do(Run regular PC operating systems like Linux and Windows). They realized they screwed up. They also charged way under what they should have for the hardware. Oh sure, they tried to prevent users from modding them, they tried to bill you for the whole thing if you used a charge card and did not login, they tried almost every sneaky thing to try to make it work. In the end, the choice of hardware and the price they chose to charge was their undoing. Now they are out of business. Don't piss of the ones who would have been willing to pay the higher price (the geeks). They will instantly undo any thing you have done.

      Oh, question.....do your really need a mod chip to run Linux on a Xbox? Seems to me I saw a post here celebrating not needing one any more.

      --

      Gorkman

  4. This isn't abuse of the DMCA... by fudgefactor7 · · Score: 5, Insightful

    because the DMCA is already abusive...it's just being applied normally. Best thing is to repeal that abomination.

  5. Why did he plead guilty? by mocm · · Score: 4, Insightful

    An X-Box mod chip is not an illegal copyright circumvention devices. It's an access restriction circumvention device. It gives you access to your X-Box hardware. What you do after that is your responsibility not the vendor's of the chip.
    He must have had a bad lawyer. He could only be guilty if he included part of MS X-Box ROM on the chip. That would have been a copyright violation.
    There is no DMCA violation here.

    --
    ***Quis custodiet ipsos custodes***
    1. Re:Why did he plead guilty? by Anonymous Coward · · Score: 5, Insightful
      He must have had a bad lawyer.

      Basically, he had less money so he lost. Trials involving corporations have absolutely nothing to do with justice. It is purely down to who has the most money. He could have pled innocent and suffered long drawn out trial which run him into $1000's debt to his lawyer. Microsoft, et al would use stalling tactics to see that this happens and will use every trick in the book to delay proceedings, etc. In most cases they win and the little guy is now totally fucked for the rest of his life because of legal costs - I guess he decided it wasn't worth the risk of fighting.
    2. Re:Why did he plead guilty? by Troed · · Score: 5, Informative
      Mod parent down - everything in that post is wrong.


      Most Xbox-modchips comes with a hacked version of the Microsoft BIOS. The Enigmah is the exception because it only contains the positions of the original BIOS to patch, and does that on-the-fly.


      The Enigmah has been considered to be the legal modchip, together with the blank ones (XII Pro, OpenXbox)

  6. The article went on to state... by Greyfox · · Score: 4, Funny

    That every retailer in the USA was to be jailed for selling "007: Agent Under Fire"

    --

    I'm trying to teach myself to set people on fire with my mind... Is it hot in here?

  7. Old burner for sale by FatalTourist · · Score: 3, Funny

    I need to sell this old 12x CD burner. It tears right through Safe Disc. So let's see, $15 is a fair price.
    $15 + $7 (UPS Ground) + $28500 (DMCA fine)

    Ok, any takers?

    --


    Escape Pod Films: Sketch Comedy and Web Series
  8. USA government is just a tool for big business by monkeyserver.com · · Score: 3, Insightful

    Thanks george w. I used to think this country served the ppl, now I realise that all it does is serve to perpetuate big business and the top .01% of the population.

    I just heard news of how soldiers took one of saddam's 7 palaces, and how extravagent it is. All marble floors and 18k gold faucets (which isn't too expensive, gold is cheap over there). They were saying how horrible it is that ppl are starving and the ruling class lives in such luxury. How is this that different from the US? We might not be killing as many of our citizens, but apparently we'll use our gestapo to throw them in jail and take their money if they tinker with their own personal property, or if they interfere with some companies defunct business plan.

    Last I checked, I own my PS2, if want to throw it off my balcony, I can. If I want to add microchips, I can. it's mine, I bought it, I don't remember sony lending it to me....

    --
    http://monkeyserver.com --- weeeeee
    1. Re:USA government is just a tool for big business by kableh · · Score: 4, Informative

      I agree with all your other points, and believe me, I loathe Dubya as much as you most likely, but the DMCA passed under Clinton's watch, so...

      Then again, the economy wasn't in the shitter back then, so who really gave a rat's ass? *looks down at his DeCSS shirt*

  9. Hang on a second... by sdo1 · · Score: 5, Insightful

    While I support the idea that people should have the right to do what they want with equipment they own, this guy made a living selling the copyrighted work of others... namely the programing in those chips (ie, the original MS BIOS which has been modified).

    Now, if he wanted to rewrite the bios, fine... but he didn't. He copied the MS Bios code, modified it, and sold it. It would be no different if I bought myself a copy of MS Windows, made some modifications to it, burned it to CD, and started selling it as my own.

    -S

    --
    --- What parts of "shall make no law", "shall not be infringed", and "shall not be violated" don't you understand?
    1. Re:Hang on a second... by hklingon · · Score: 3, Insightful

      Licensing can be a double edged sword. Courts have shown that Licenses are inalienable rights to works.* So... if you're buying one of these things on the condition that you own an X-Box, you are ALREADY licnesed for the use of it. Since you ALREADY have the unmodified bios in your XBOX, and you can only use one at a time, he isn't technically changing anything about the nature of who has what code.

      *By inalienable, I mean outside forces can't destroy your license [fire, theft, etc]. I think the specific case was an office building burned down taking the paper license with it, but the company still had proof they bought it. Some company wanted them to re-license the software, but the courts ruled they didn't have to because it was a right-of use, largely intellectual work in nature.

  10. It is sad, but what can you expect? by peerogue · · Score: 4, Interesting

    This is sad.

    I have a friend of mine who, way back in 1991, had dissecated his HP calculator (HP-48S). He had found a way (by chance) to read memory through one of the HP-48S functions, and, knowing the chip used, was able to disassemble the ROM of the calculator.

    This allowed him to create new functions like ".." to move up the directory hierarchy of the calcultor, or even setup a password-protected login. Cool nerd things.

    Anyway, he published his book in France. A few weeks later, he was contacted by HP. They wanted to know how he got those information. He told them and was no further bothered.

    Now imagine it would have been in the USA with a DMCA law. This kind of reverse engineering and publishing could have been sanctionned, despite the fact that it did not harm HP a bit, nor did it reveal trade secrets. It merely gave a way for geeks to use the HP-48S in cool new ways.

    Back to the topic, I would say that this case shows us how a law can be used against the people that elected their representatives, who in turn voted such a law. Sometehing did not get right here.

    The law is the law, it must be applied. At the same time, people must realize that this law is a bad one, that it gives too much power to companies, and that it prevents "fair use".

    Selling mod chips is not an activity I would blame. It does not hurt my values, nobody is hurt in the process, and people modify hardware they bought. Yet it is unlawful. If it chokes you as well, it means we both agree the law needs to be changed.

    If you don't like that, don't buy this company's hardware. And write to your representative to have the law revisited.

  11. Why the DMCA licks it... by este · · Score: 5, Insightful

    I read -alot- of postsalong the lines of "What's the big deal? If it's illegal, it's wrong!"

    Bullshit.

    It was once illegal for non-white non-male U.S. citizens to vote, but that doesn't mean it would have been wrong for then to do so, nor is it now. Yes - some courts interpret the DMCA in such a way that things like modding your own hardware are copyright circumvention and are therefore, under the Act, illegal.

    But there's more depth to this issue.

    1) In my opinion, mostly, I can do whatever I want to what I own. I could put my Xbox in a washing machine, throw it off a cliff, or fill it with Jagermeister. It's mine.

    2) Just because an object has the potential to violate a law does not automatically mean it does. If I work at a Wal-mart, and sell you a baseball bat, and you crack someone over the head with it, I'm not going to be charged with homicide. That's the end-user's fate.

    3) Are a good deal of mod chips used for playing illegally copied materials? You bet. But that's not all you can use them for. Just because hareware has capabilities that are illegal (see #2), doesn't mean that's what it'll be used for, nor can it belabled a "circumvention device". I mean, if you're going to slap that label on, why would no the Xbox itself be a part of that group too? You need the machine as much as the chip to play a pirated game.

    The point is, there simply exists too much ambiguity to assuredly charge that mod chips and the like are outright "circumvention materials". And as such, one who sells them a) should not be held responsible for selling such a product, and b) should not be held responsible for it's eventual use. Exploitation of legal ambiguity? Maybe. But that's what makes America great ;-)

    --
    [este]
  12. Who abused what? by stratjakt · · Score: 5, Insightful

    The site was isonews. Dedicated to posting .nfos and tracking all the releases in the warez scene. While they didnt link to downloads, or allow site advertising in the forums, the forums were full of people talking about how to copy this or play that on whichever console.

    The site was not about 'backups', it was not about linux, it was not about fair use. It was about piracy.

    And he sold Xbox modchips. He couldnt sit and yammer in court about fair use rights or running linux legally. He sold them for a specific purpose - playing illegal copies.

    You can also make something of the fact that he was convicted for selling the 1st gen modchip Enigmah. Basically all xbox mods are bios hacks/replacements. The enigmah had a hacked version of the xbox bios.

    Newer mods are basically blank flashroms. (Homebrew mods are blank flashroms) I don't see how you could be convicted selling those, unless you specifically make a point of saying the device is for playing pirated software.

    I'm all against the government abusing its power.. Yeah yeah. But this guy abused his (and by extension everyone elses) "fair use" rights.

    Screw him. He and people like him are the reason the DMCA passed in the first place.

    --
    I don't need no instructions to know how to rock!!!!
    1. Re:Who abused what? by Havokmon · · Score: 3, Insightful
      I'm all against the government abusing its power.. Yeah yeah. But this guy abused his (and by extension everyone elses) "fair use" rights.
      Screw him. He and people like him are the reason the DMCA passed in the first place.

      I'm with you on him 'doing wrong' and being punished for it, but prosecuting him under the DMCA fucked us all. Now there's a documented case of manufacturer vs. distributor of 'hardware modification' equipment, and the manufacturer winning outright.

      I'm starting to fear for my new arcade hobby. What if I get a JAMMA adapter that allows my JAMMA cabinet to play Galaga? Is Namco going to come after me?

      Or better, what If I wanted to hook my PC to my JAMMA cabinet with a J-PAC? Sure, a lot of people use it to play MAME (which is illegal if you don't own the board), but you're not restricted to MAME games. Put on a trackball, and it could be a 'web browser arcade cabinet'.

      --
      "I can't give you a brain, so I'll give you a diploma" - The Great Oz (blatently stolen sig)
  13. Re:Radio Shack set for hefty fines by kableh · · Score: 3, Informative

    More or less. It is a flash memory chip, similar to the NVRAM on your motherboard. In fact, I hear that is how a lot of people flash them, putting the chips in an older motherboard and flashing them with a BIOS image for the Xbox.

    But that is the catch: If this guy was selling just the chips, with nothing programmed on them, then he would have a legitimate defense. If he was selling them programmed with a hax0red BIOS image, it most likely contained Microsoft copyrighted code, which IS a copyright violation. How that falls under the auspices of the DMCA I don't know.

    That said, if there was a legitimate BIOS image, mod chips probably would fall under the interoperability clause of the DMCA. IANAL, but you could at least defend it that way, with all the homebrew software out there.

  14. The Iraqi's must be so excited! by freedommatters · · Score: 3, Funny

    When the Iraqis realise what Bush means by freedom they'll wonder what all the talk of liberation was about!

    All I want for Christmas is my Constitutional Rights

  15. The purpose of jails by Obasan · · Score: 5, Insightful

    Many of the threads on this story - I suspect, will follow one of a few different aspects of this case. Whether this fellow "Deserved" what happened because what he was doing was allowing the illegal copying of copyprotected works. Whether or not "tool" providers should be prosecuted rather than those actually circumventing copy protections and breaking copyright law, and general challenges to the legitimacy of the DMCA.

    I'd like to bring up another thread - the appropriate use of prisons in our society. It has come to pass that the answer to all criminal activities is "send them to prison". Does this make sense for non-violent crimes such as this? This guy didn't rob a liquor store, he didn't point a gun, knife or other weapon at anyone. He didn't threaten anyone. What, exactly, is the point of sending someone like this to jail?

    I'm not going to argue whether he deserves punishment or not - I'm sure that will be handled in a lot of other threads. But if we are going to punish these kinds of crimes - what punishment should be used? Having a prison population is a huge burden on society, and its reformative powers are pretty dubious at best. Are we not better off assigning community service hours or similar types of punishments for these kinds of crimes?

    Thoughts?
    Obasan

    1. Re:The purpose of jails by awol · · Score: 3, Interesting

      I'd like to bring up another thread - the appropriate use of prisons in our society.

      Thank you. But you have only identified half the problem. The real issue is the criminalisation of civil wrongs. It is _extremely_ distressing the extent to which wrongs, and I too choose not to decide if what this guy dud was actually wrong, of a commercial nature are being treated as criminal acts. The issue of the correct form of punishment is somewhat late after the fact.

      Even up until the 18th and 19th century there was imprisonment for debt, a truly nefarious practice whereby debtors were sent to gaol fro their inability to pay debts, the absurdity of this in that being in gaol robbed most of them of their capacity to repay the debt first incurred eventually lead to statutory prohibition on IFD. Have a look at any UK derived commonwealth (including most all of the US states) and you will find such a prohibition. The trend we are now observing with the DMCA etc is just wrong, eventually (and if we actually get off our asses, me included, it might be sooner) this will be fixed, but it's going to be later rather than sooner.

      --
      "The first thing to do when you find yourself in a hole is stop digging."
  16. DOJ Press Release on isonews.com by ayden · · Score: 4, Informative

    The DOJ posted their press release about this case on the seized isonews.com website.

    --
    "I'm The Bounty Bear. I will find him anywhere. I'm searching."
  17. In other news.... by Garion911 · · Score: 5, Funny

    Hardware stores such as Home Depot, Sears, and others were closed permanently today in reaction to a lawsuit brought by Anderson Windows, Pella and other window manufacters.

    A Pella representative stated: "We have asked these stores to stop selling devices that are in violation of the DMCA in relation to our window products. They refused, stating that there are other uses for the devices in question, hence the lawsuit."

    When asked what products and how it was related to the DMCA, they responded: "Windows are digital. They are either open or closed. When closed, they are a security device. The stores were in violation of the DMCA by selling devices called 'hammers' that could easily remove the security of the device."

    (I'll leave the open and shut case jokes as an exercise for the reader..)

    --
    Slashdot is like Playboy: I read it for the articles
  18. DMCA *is* Abuse by 4of12 · · Score: 3, Insightful

    The DMCA has just been applied naturally in this case. The problem is not that the DMCA has been absued, but rather that the DMCA is abuse.

    New technology has not been immune to misguided legislation.

    I thought all these issues had been hashed out earlier with regard to crowbars as burglary tools (crowbars aren't illegal, but breaking into a house is, etc.), the VCR case (people are allowed to make copies for private home viewing), headshops (drug paraphenalia is OK, possession of certain drugs is not OK (sorry, bad example)).

    Those earlier legal precedents were seem largely reasonable and it would have been logical if recently-enacted legislation didn't try to use new technology as a tool to fix what is really a social problem. Now that's an inappropriate use of a tool if ever there was!

    Don't prosecute people making or possessing tools or technologies. Instead, prosecute the people that directly use them to genuinely violate a copyright law (say, by selling illicit copies). Equivalently, they should simply install speed governors on automobiles so no one exceeds the posted limit. Removing your speed governor or selling means to defeat a speed governor would be crimes under the DMCA mindset.

    --
    "Provided by the management for your protection."
  19. the rule-of-law by chipwich · · Score: 3, Insightful

    The scary thing about this is that US laws are now increasingly oppressive to the point that their enforcement in an arbitrary fashion seriously degrades the fabric of society.

    You can't have a rule-of-law which doesn't apply equally to everyone. I mean, I guess we knew that since well before the OJ trial, but here's a case where a seemingly innocuous crime has unreasonably harsh punishment. Kill a man, get off. Endanger corporate intellectual property, be punished eternally.

    But then, I guess even something as simple as speeding could potentially be applied arbitrarily. But we know that cops would never engage in profiling, right?

    History has shown that *all* governments tend to opress their citizens eventually. The US is about to learn that big-time.

  20. Overreaction by Little+Dave · · Score: 4, Insightful

    Fair enough, the guy was distributing copyright material. He done bad, he should be slapped on the wrists. But prison? Are American prisons really so spacious that you need to fill them up petty, almost victimless crimes like these?

    Pointless.

  21. Stupid by stevenp · · Score: 3, Interesting

    This is plain stupid (at least from my European point of view)
    If the law wants to be consistent, then these and these guys should also be arrested as they sell "protection circumventing devices".
    Selling a tool which allows to break the law should not be punished, only breaking the law should be.

  22. Clarification by steronz · · Score: 5, Interesting
    The confusion over this issue has been bothering me ever since the story broke several months ago.

    XBOX mod chips ARE NOT ILLEGAL! They never have been! I just bought one last week. The mod chip is nothing more than a regular PC bios chip with some circuitry to override the on-board bios. The bios that I downloaded from IRC and flashed to my mod chip IS illegal. It's just a slightly modified version of the COPYRIGHTED xbox bios. Now, you can argue about the legality of copyright law, but this has nothing to do with the DMCA.

    Moving onto the case in question, this guy was selling mod chips with the modified (illegal) bios already installed. Big mistake. If he had been selling blank modchips like the rest of the world, he would have been fine.

    Now, if you'll excuse me, I'm gonna go play my pirated copy of DOA: Beach Volleyball...

  23. How Do Modchips Violate Microsoft's Rights? by dmarx · · Score: 5, Insightful

    How, exactly, are Microsoft's rights violated by someone modding their X-Box to play games that have not yet been, and may never be, released in their country?
    Is Microsoft's right to life being violated? No.
    Is Microsoft's right to liberty being violated? No.
    Is Microsoft's right to property being violated? No.
    So now we must ask why, in the so-called "land of the free", a man must have his life ruined, and spend five months getting his shit packed, for "dareing" to sell devices that allow people to modify hardware that they bought and paid for?!

    --
    "Do I dare disturb the universe?"
  24. Re:Perhaps they thought isonews = hacking? by Anita+Coney · · Score: 3, Insightful

    I think you're missing the point. With this ruling, what stops GM from making it illegal for you (or any third party) to change your car's oil filter or tires?

    What stops Dell from making it illegal to install a new power supply and motherboard to your old Dell computer?

    A long time ago I had a guitar amp which I modified by placing a capacitor in it which made it distort better. Should that be illegal too? Under this ruling, it could be.

    It doesn't matter if we have a good reason to muck around with the stuff we buy, what matters is that we should have a right to do so.

    --
    If someone says he and his monkey have nothing to hide, they almost certainly do.
  25. Re:Umm, they already do that. by CausticPuppy · · Score: 3, Insightful

    It's been illegal to do this for over 30 years.


    Insurance companies might not like it if you upgrade your engine without telling them, but there's nothing against the law about it, so long as the car is still street legal (passes emissions tests, etc). And of course you'll void your warranty. There are legitimate companies out there that specialize in exactly this, such as Lingenfelter Performance Engineering.

    --
    -CausticPuppy "Of all the people I know, you're certainly one of them." -Somebody I don't know