Ottaw man fined $17,000. for altering Play Stations

[morgana]

Below is an article found in the Ottawa Citizen paper. It should kind of show us, that times have changed


Man fined $17,000 for modifying PlayStations
Entrepreneur sold pirated video games to undercover RCMP

Jake Rupert
The Ottawa Citizen


Friday, July 19, 2002
ADVERTISEMENT


Abusing major technology companies by bilking them out of a few dollars may seem like a small crime, but for an Ottawa man yesterday it resulted in a big fine, a criminal record, and a year on probation.

After pleading guilty to two counts of copyright infringement and four counts of selling unauthorized computer equipment, Robert Garby, 38, was convicted and handed a $17,000 fine for selling pirated video games and modifying Sony PlayStations to allow the units to play pirated games.

Mr. Garby, who had no previous criminal record, was also placed on probation for a year with the condition he not own any equipment that would allow him to repeat the offense.

"You are a small player in a huge national and international problem of copyright infringement on computer software," said Justice Bruce MacPhee before handing out the sentence. "It is illegal and unlawful."

From November 1999 to March 2001, Mr. Garby, a family man who volunteers and coaches in Ottawa's minor hockey association, ran Kustum Komputers on Thurston Road.

He would place ads in the Pennysaver flier saying: "Unlock your PlayStation. We sell and professionally install the most modern mod chips."

People would come to his store with their units. For $30, Mr. Garby would install the "mod chips." PlayStation hardware contains a security system to block non-authentic games. Chips installed by Mr. Garby circumvented the security system so the units would play pirated games.

He also offered 413 pirated games for sale.

He was charged after an undercover RCMP unit brought a PlayStation to Kustum Komputers, and Mr. Garby modified it. They also bought pirated games.

Records seized from Mr. Garby's store show he sold and installed about 840 mod chips.

He also sold some 334 pirated games for $10 each, one fifth of the normal retail cost.

He grossed about $30,000 from the illegal activities.

Before he was sentenced, Mr. Garby said he had thought the activity was legal, but that he took full responsibility for his actions.

"If I had taken an extra 15 minutes to do the research and found out what the laws were, I would have never gotten into it," he said.

Mr. Garby never tried to hide his business. His business phone number was registered to him, his office was rented in his name, and he kept records, which he turned over to the RCMP.

Federal Crown attorney Susheel Gupta asked Judge MacPhee to fine Mr. Garby an amount equal to what he grossed from the illegal operations, while Mr. Garby's defence lawyer, Mireille Landry, suggested a fine of $10,000 was more appropriate.

Judge MacPhee decided that $17,000 was high enough to send a message.

The International Digital Software Alliance estimates software piracy costs the industry $440 million annually in Canada with a corresponding job loss of 8,340 jobs.

© Copyright 2002 The Ottawa Citizen

[wiggy2000]

alot of dss dealer sites if you goto them sell these mod chips...arent they illegal?

[javist]

Probally not illegal to sell them, probally illegal though to install them and to modify the console system

[morgana]

Yes they are illegal, but arguements can be made about you owning something, so you should have the right to alter it. But I guess it all comes down to purpose. Just what is the purpose of altering it. If that purpose is to stop the manufacturer from making his money, then yes there is a case for it.

This guy plead guilty, I assume, because his lawyer probably advised him to do so. I am not sure other lawyers would do the same. So yes, as you pointed out that many DSS sites also advertise these same mod chips, it is one more thing for them to consider.

Times are changing fast and it looks like the pendulum is swinging back toward the copyrighters side again. That means we should not be so arrogant to think, we have all going our own way. It is a fight that you can not win by lying down and watching. You actually have to get up and act in some way, or the next knock may well be on your door.

The scarey thing is they must have all his books, as they knew that he charged $30.00 to do the mod and he made $30,000.00 doing them. This means 1000 customers. I wonder if now the next step will be tracking down and pursuing all the customers, similar to what is happening in satellite. I can see it now "Sony arresting 1000 pimple faced teenagers, who did not buy their copyrighted games". It may not be that far off.

[ELF-CO]

In this case, you have to look at the context. This guy was installing mod chips AND selling pirated video games openly. A clear case of doing installs solely for the purpose of profiting via piracy. It is not the same thing as just selling and installing mod chips by itself. Is THAT illegal? Until someone is willing to take on Sony in court to prove otherwise, I would have to say yes. But realistically, it should not be.

A mod chip allows for the end user to play "import" games that has region coding. (And there is a huge selection of Japanese games out there that would be unusable in North America without a mod chip). The mod chip also allows people to play their original backups. Which, by law, everyone is legally allowed to make archival backups for their own use… regardless of Sony whining about it. (With restrictions, such as only one copy per machine, etc., etc.) Imagine how impressed your kid would be, after receiving a store bought copy of a new game from Grandma overseas for his/her birthday, just to find out that their Play station would choke on boot up because of this “region coding” garbage that neither you, your kid, nor Grandma thought about prior. I know what it’s like… as I was equally impressed when I bought my first DVD on an auction website… and found out that my DVD player wouldn’t play it for the same reason. I am still miffed about it, several years later. Have these people not heard about the internet? Do they really not want international sales? Really, it’s pretty pitiful that such restrictions be placed on any media... and it’s no wonder why consumers are seeking modifications. If there wasn’t a market for it, then it wouldn’t be an issue.

Sony has been very proactive lately on going after mod chip makers... and has succeeded in scaring many of them into submission with legal threats. (Mainly in Europe) Also, in the U.K., the high court has ruled them as “illegal” under the Copyright and Patents Act of 1998”… although many consumer groups are expected to lobby against this decision in the near future. After all, if you think DTV has ample funds to spend on lawyers and in court… try to imagine what kind of ammo Sony has. But to my knowledge… this has not gone before the courts yet in Canada, based solely on the “mod chip” issue alone. (Dunno about any U.S. court cases either)

A case in Australia is pending right now, based on the “mod chip” technology by itself. And the “Australian Competition and Consumer Commission” are going to argue against Sony, stating that their “regional playback controls are unlawful”. (The ACCC is Australia’s competition watchdog, and will be granted intervener status in this Federal case) If the case is won, it will certainly help future cases around the globe.

Regarding the case mentioned… in my opinion, he got off lucky, since there can be no argument made over selling “pirated video games”. They could have fined him well beyond that. (They even let him keep about ½ what he made from an illegal activity… which is bizarre, when they could easily have asked for all of it as “proceeds from crime” PLUS pay penalties). Had the guy sold Japanese imports instead of “pirated copies”, or just sold and installed mod chips period… I wonder how this case would have resolved, or if he even would be taken to court in the first place.

[1 CRAZY CANUCK]

Where in the 'SAM-HILL' were they when "we" bought cars, in the late "60's"; and, we modified them. ....Hmmmmmm!
"MOTHER of INVENTION was "NEED; nothing, ELSE!"! What more can this "Crazy Canuck" say?

[shadowmite]

I too once sold mod chips for the ps-one. However the DMCA directly makes these chips illegal in my opinion. They serve only one purpose; to bypass the copy protection technology of another company. The code is legal; but not putting it on a pic12c508 and not selling it... This is why most dealers are now in other countries. Yes there are some ways around this; same as having bought a iso7816 programmer. But is it worth the risk, time and effort?

[To The Real King!!]

Hi Guys,

This is something I am in the dark about but I get many letters from people who ask about it.

Firstly the DMCA does not apply in Canada but I does apply in the USA. So we have to make that distinction when discussing this.

If the issue of MOD chips (is that short for Modification or does it have another meaning?) has not gone to court in Canada, then it could be useful to discuss what they do.

Is this simply a "region control" remover allow the play if games from other areas? Somewhat like CD's.

There are plenty of programs on the internet that allow this and I do NOT think this would be illegal in Canada. Generally you can change regions and then change back again if you want. I have seen these but never needed them or used them.

Are the games that are spoken of on CD's or are they cartridges?

Does it allow the complete removal of all protection therefore allowing the playing of games that were not made specifically for that game player?

Or does it just allow you to play copies of the game that were either burned on the CD burner or perhaps copied via ROMS if they are cartridges.

I understand there are also RAM based or FLASH based cartridges that almost any game can be copied to. Is this correct? And do you need a MOD chip to play those?

I really do not understand any of this since I am not a gamer but we may need a complete description. Sorry for requiring the education. I am probably not alone on this so if someone can make it clear how this all works, it would be appreciated. The last time I really played games was on an Apple ][ about 20 years ago :)

Firstly are any of these Games cross compatible? Can for example an xbox play games from Sony with a MOD chip?

Sorry but we are going to need lots of patience with this for Canada. If there is no cross compatibility then I presume each type of game (play station, xbox and whatever) needs to be looked at separately.

I also see programs for PC's that allow copying of CD's, can these CD's then play on a protected game (stock) or do then need the MOD chip too.

And what is the MOD chip. Is it an EPROM that needs to be simply changed or what?

As far as the USA goes it seems like the DMCA, which protects against devices that are designed to remove protection either makes it clear that they are illegal or possibly muddies the water making it somewhat unclear if this is not the chips exact purpose.

I do not think we should get into this totally (since its a satellite forum) but if DSS vendors sell these and there is interest then perhaps we can try to determine the legality in Canada since the DMCA does not apply here. Studying the whole issue will certainly reveal information that is useful everywherehttp://www.legal-rights.org/images/ttrk.gif

I just want to point out that while this gentleman pled guilty, its really not clear what offence he actually committed, if any. People can plead guilty to a crime that is not really against the law and still be convicted. I am not saying its NOT against the law, (I simply don't know yet) and I don't think we are a research place for vendors but it may be interesting to understand if a consumer who installs one of these is committing a crime or not. If a person is allowed to make a back up of his original (CD or CARTRIDGE) then he must also have the right to be able to use it. If games are protected, how can he do that.

One example is that I buy CD programs for my 9 year old, music and DVD. She always scratches them and just does not handle them right. So I make a copy for her, (CD, MP3 or VCD) put away the original and expect that later she will need another copy when that ceases to play. That copy can be tossed since they cost under a buck. This is not done to cheat anyone but I will be dammed if I will buy her the same game or educational program twice. With games she is into a handheld thingy and she plays cartridges (originals) and has never has one stop working yet. But I know nothing about that. But when it comes to CD's, If I cannot make a backup (some music now wont allow this) then I just will NOT buy it for her. I make sure that what she wants is copyable, either in the clear or with the programs I have) BEFORE I buy it, especially with music. If we do not REFUSE to buy copy protected Music, soon it will all be unable to be played on computers or backed up. But if they dont sell them because people refuse to buy, then eventually they will go away from it. I believe this is important since these content people have gone too far. Who would buy a copy of a CD for home, one for the boat and another for the cottage. That's outrageous in the opposite direction but these people want to wring every dime they can out of people. Once you BUY a CD, you should be able to play that music (your property) anywhere you want with convenience.

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[ELF-CO]

TTRK:
I will attempt to answer those questions in the order you posted them. (Warning, long read here):

1) Correct about the DMCA. It certainly played no part in this guys conviction, since he was charged and found guilty (or plead guilty) in Canada. It’s irrelevant to Canadians. However, to my knowledge… a court case has not been made regarding “mod chips” (solely) in the USA either.

2) A “mod chip” does stand for “modification chip”. And typically, it involves more than just a chip itself. Depending on the modification, it may require some soldering skills. And the mods also void any warrantee with Sony. (That was the initial threat stopping most people, until they figured out that a 90 warrantee didn’t mean much) Other forms of mods have been considered “legal” and useful, such as the “Game Shark”, which allows for players inserting “cheat codes” into their games, etc., in addition to allowing the use of backups and region code correction. (And these devices were being sold at the retail level in places like ToysRUs, etc.

3) It is the rough equivalent of a "region control" remover. Original play station disks have a 'boot code' written on the first track of the CD. When the disk is first inserted, the Playstation reads the code on the CD and compares it with its own code. If these two codes don't match it will not play the game. This 'boot code' can not be copied when making a backup disk. (Because the PSX CD disks are manufactured with modified equipment to write to a track that a normal CD writer cannot write to without expensive modification.) The Modchip injects the correct boot code into the Playstation so it thinks the game is the correct region & backup disks have the correct boot code.

4) No, the “mods” out there do NOT “allow the complete removal of all protection”. But with the PSX, part of the copy protection “gimmick” is the boot sector of each disk. (I say “gimmick, because it really isn’t copy protection in itself… as it CAN be duplicated easily… but in order to make a physical copy that is exact to the original, you would have to invest in some very specialized and expensive writers which many people could not afford.) If you were to consider this copy protection, it would be the rough equivalent to the old days of floppy disks, where invalid tracks were written to the floppy, which a standard disk copy could not read and therefore not duplicate. (Hence “choke”!) Eventually there were ways around this when the courts finally decided that it was absolutely legal for an end user to be able to make a backup copy of their software in case of failure. But even with a “mod chip” installed… an end user cannot just go out and start copying games and playing them. There are other protections on the newer CD’s as well, and the cycle of protection on these CD’s will repeat itself just like it did with the floppy, until another form of media replaces it too. The mod chips just defeats the boot code check… and if the game relies on that as it’s sole form of copy protection, then a copy will work just fine. (Hope I explained that right!?)

5) Games that are copied from “cartridges” (which are basically the software on a chip, EPROM, EEPROM, Ram, etc.) are definitely illegal to own or use... assuming you are talking about cloning the cartridge hardware as well as the software. (Nintendo Corp. Commodore, Bally, and Atari owned the rights to such technology initially) And in a case such as this, a mod chip is unnecessary, as the Rom is copied verbatim, hardware and all. On a cartridge based game… it’s the “cartridge” itself that is the form of copy protection. The actual software has no additional protection.

6) Cartridge “copiers” have been in existence for many years now. Typically, it will take a digital “snapshot” of the program, and store it as a file to be used in an alternative manner. These too, were ruled as “legal”, because software is software… and the end user was entitled to make an archival backup of their owned software. (Please note that I said "software"... as the hardware itself is illegal to copy, due to patent infringement) Simply as that. The medium used to store the software is irrelevant! Good examples of such technology would be the ‘ol Commodore 64 and it’s various cartridge copiers out there. And then the Commodore Amiga with it’s “Action Replay” cartridge copier… which is the exact same technology that spawned the current Game Shark for the various consoles on the market today. (Same company made each too)

7) Mod chips do not allow for “cross-platform” interchanging of software, and never will. In order for that to work, the systems would have to be extremely similar… and they are not. PSX games do not play on Xbox, etc. In order to play games on a machine not intended for its use, you will need an “emulator”. (And we are talking a “true” emulator, not like the DSS hybrid.) A True emulator can duplicate all the hardware functions at a rudimentary level, needed from the original host machine, and reproduce them in order to play said game on a PC. Good examples would be the CBM C-64 emulator by Ready-Soft. (The first commercial emulator). Later followed many, such as the publicly available MAME. Older hardware is easier to emulate than the current hardware. But as technology advances, emulation of current hardware is becoming available. The PSX can be emulated to run on a standard PC (to a degree) currently with programs such as the free ePSXe.

8) Copying and the law. When it comes to software, the path is clear. End users ARE allowed to make archival backups of their software, to safeguard in the event of disaster. (Do not attempt to apply this to DTV… it simply isn’t applicable for several reasons… mainly because you do NOT OWN the contents on the card itself, but are being granted a license to rent it’s contents on a month to month basis). If one wants to quibble about the law… a good example (TTRK brought up) would be copying music. Legally speaking, I am not allowed to make more than one copy (backup) of my music that I bought and paid for. (Regardless of media…CD, tape MP3, etc.) Yet has anyone ever been convicted of making a mix tape for personal use? Not to my knowledge. And this spans over several decades since tape was first made available. Now applying the same set of rules to software… if I was to go out and buy Microsoft Office or some other expensive program… am I not entitled to safeguard it from damage by making a copy of it? You bet I am. If I didn’t, and the disc got damaged or stolen, I would have to spend lots of cash to have them furnish me another copy that I already “legally” owned. This is a very valid argument. With regards to PSX games… if your disc gets damaged and refuses to play, you will be out the $$ you spent, as very few game companies will supply you with a replacement copy for less than the retail cost. So long as I do not abuse the process by making multiple copies for several machines, or trying to sell the backups… what law have I broken? I am merely safeguarding my investment that “I” paid for.

9) Types of media: It simply doesn’t matter what type of media is presented. (Cartridge, tape, CD, floppy disk, hard drive, smartcard, etc.) If you bought a product on one of these types of media… you are allowed to make an archival backup. (Whether you are actually able to do it however is entirely up to you and your ability.) When it comes to copy protection… if it is software based, it WILL be defeated sooner or later… regardless of media used.

[morgana]

I will get in touch with this guy personally next week and ask him exactly what he was charged with and try to get a flavour of just why he plead guilty. I do know that he also was involved in some other things, that do not appear here, so maybe delas were made. I will not know for sure.

To tell you the truth I did not even know this was going on, until I read the article in the news paper, and I usually try to stay abreast of what is happening here in Ottawa. I do remember hearing about a raid quite a while back at this store, but the rumour was more for computer s/w related and games. So I did not really take much note of it.

The problem I am seeing is, since I can see many sites on the net openly advertise these same mod chips, it will give them something more to move you up the chain of who gets nailed first. I do know that there seems to be a software colition, here in Ottawa that is auditing many of the government and other businesses computer software, and either companies comply immediately to any misuse or they have been charged. So far not many have gone to court yet so I do not know out comes. I will assume that this same stuff is either presently going on in other cites as soon will be. It seems as the times have slowed the software sales, the companies now feel it is time to go back and make sure all using their products are paying for it. I guess this way they still can keep their heads above water in these trying times for them. Maybe this is the same for SONY in this case.

I am of the belief that if you buy something, you own it and you should have the right to modify it any way you please. Yes you will lose your warranty, but who cares. The problem I guess is the mod chip still has all the copyrighted programs in place that you paid for the right to use, but the chip you have the rights to must also carry the security. To reproduce a chip using their copyrighted code whether in part or in whole, is a copyright infraction. If the mod chip could somehow be rewritten in a different way but still do the same results, then I do not think copyright would apply. Something like the old SUN boards versus the VCII type thing. It is going to be a case of everyone will have a seperate opinion on this.

Any way Like I said, I will post more after I have talked to this guy and maybe then it will be clearer as to what and how they came after him, and why he plead guilty so readily. Usually there is more to these things then we ever read about in the paper.