From INQ:

US Federal customs agents have raided 30 businesses and homes hunting for mod chips which allow pirated games play on Sony's PlayStation 2, Microsoft's Xbox and Xbox 360, and Nintendo's Wii.
The US Immigration and Customs Enforcement say that the illegal chips and other devices used on gaming consoles violate the Digital Millennium Copyright Act.

In a press release, the Julie Myers, assistant secretary of Homeland Security said the devices were created wit the sole purpose of subverting copyright protections.

She also claimed that these crimes cost legitimate businesses billions of dollars annually and facilitate multiple other layers of criminality, such as smuggling, software piracy and money laundering.

Apparently the investigators have been looking at the targets for about a year.

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This is complete bullshit, and I hope that the cases get thrown out in court. The sole purpose stated by EVERY modchip makers, is to use to chips to play imports and homebrew. Neither of which is illegal. Yet, the chips let you play "Copies" of games too. But as the argument over the last 15 years has shown, it is still legal to make a backup of software you own.

If this gets through the courts, and the chip makers are found guilty, then I should be able to have the owners of Ford Motor Company arrested, because their products allow people to commit vehicular homicide, and asset criminals in evading the police, via "Gettaways."