Mod Chips and Homebrew: A Recipe for Their Continued Use in the Wake of Sony v. Divineo

June 16, 2012

Sony v. Divineo appears to sound the death knell for use of mod chips within video game systems. With a three million dollar damages claim against a mod chip distributor, it is becoming cost prohibitive to sell these chips directly to consumers. The Digital Millennium Copyright Act, with its potentially crushing requirements, stifles the creativity and innovation of mod chip distributors and overlooks fair use as a defense for the use of mod chips. Fortunately, the next batch of legal forays into the world of mod chips may allow for better outcomes for mod chip distributors. With existing, valid arguments for significant noninfringing uses and lessons provided by other countries, victories in lawsuits against video game monopoly holders may not be far away.