Why are mod-chips illegal?
Copyright owners often use technological measures to control or manage access to their works, and to control unauthorized copying of the content of their games. These technologies are critical to the development of viable marketplaces for copyrighted computer and video games and other copyrighted product. Congress recognized the importance of these technologies in the Digital Millennium Copyright Act (DMCA) when it outlawed the manufacture and distribution of products or services aimed at circumventing these copy and access protections. Some mod-chips circumvent the security technologies that Microsoft, Nintendo and Sony have incorporated into their console systems to stop people from accessing and illegally copying the content of their games. These mod-chips are illegal circumvention devices under the DMCA. People caught selling them or installing them may be subject to criminal prosecution and are liable for civil damages resulting from such activities.