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 24-01-06 

"Mod-Chips" - Do not infringe copyright - a compromise between users and copyright owners

In a rare decision, the High Court has unanimously held that "mod-chipping" of Sony PlayStation consoles is not an infringement of the anti-circumvention provisions contained in the Copyright Act 1969 (Cth).

In this case, a Sydney retailer of PlayStation consoles sold and installed modifying chips (known as 'mod-chips') for PlayStation consoles manufactured for the Australian market. The mod-chips circumvented a device installed in all consoles that prevented the user playing pirated copies of games, as well as playing games purchased legally but intended for sale in regions other than Australia's. In doing so, users could not only play pirated games, but also the genuine (as well as cheaper and often unavailable or not-yet-released in Australia), imported games.

The Court rejected Sony's interpretation of the Copyright Act's 'anti-circumvention provisions', finding that the PlayStation system was not, nor did it include, a "technological protection system". One basis for this finding was that while the console did prevent or inhibit access to the work to play the game, the console did not prevent or inhibit the infringement of copyright in the work by preventing the making of an illegal copy (that is, by burning a copy).

This decision represents an attempt by the High Court to balance the interests of users with the interests of copyright owners, and has the potential to impact other technologies, such as DVD players, which include similar anti-pirate and non-region devices. However, it is likely the effect will be short lived- amending legislation is probably being drafted at this very moment.


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