Modchips are components that are added to a game console in order to gain new features, often possibility to play replicated games. Modchips require the opening of the console and soldering of a chip on the board. Of course, the addition of a modchip to a console means the loss of the warranty.
In the US, modchips fall under the realm of DMCA. Often the games are encrypted, and thus fell in the scope of DMCA. But, is it the case in all countries? Last month, it seems that English judge Jacobs ruled in favor of legality. Mr Neil HIGGS was released from the 26 counts. He sells modchips imported from Honk Kong.
Modchips are an important factor in game piracy. There are modchips for most game consoles. It is rather easy to find modchips on the Web, but it requires some skills to solder the chip. Some shops offer this service, and even sell already modchiped consoles. Ironically, one large modchip supplier uses holograms to authenticate its modchips. Other suppliers are selling counterfeited modchips!