U.S. Customs Stages Raid to Unearth Video Game Pirates

Federal customs agents yesterday raided more than thirty businesses and homes in 16 states looking for devices that allow pirated video games to play on Wiis, PlayStation 2s and Xboxes.^[1] The investigation into the alleged sale and distribution of illegal modification chips for the games consoles and others included 32 search warrants in 16 states, said the U.S. Immigration and Customs Enforcement.^[2] ICE declined to release the names of those targeted but said they are allegedly responsible for importing, installing, selling and distributing foreign-made devices smuggled into the U.S.^[3]

Piracy losses for Nintendo and its game developers and publishers likely totaled $762 million last year alone, said Jodi Daugherty, senior director of anti-piracy at Redmond, Wash.-based Nintendo America.^[4]

Yesterday's federal raids came after a yearlong investigation conducted by ICE's Office of the Assistant Special Agent in Charge in Cleveland, the raids were conducted in California, Florida, Hawai'i, Idaho, Illinois, Maryland, Massachusetts, Michigan, Minnesota, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas and Wisconsin.^[5]

Illegal chips and other devices used on gaming consoles violate the Digital Millennium Copyright Act of 1998.^[6]

Digital Millennium Copyright Act (DMCA) is a United States copyright law which implements two 1996 World Intellectual Property Organization(WIPO) treaties, it was passed on October 8, 1998 by a unanimous vote in the United States Senate and signed into law by President Bill Clinton on October 28, 1998. The DMCA amended title 17 of the U.S. Code to extend the reach of copyright, while limiting the liability of online providers from copyright infringement by their users It is codified at 17 U.S.C. §§ 512, 1201–1205, 1301–1332; 28 U.S.C. § 4001. It criminalizes production and dissemination of technology, devices, or services that are used to circumvent measures that control access to copyrighted works (commonly known as DRM) and criminalizes the act of circumventing an access control, even when there is no infringement of copyright itself. It also heightens the penalties for copyright infringement on the Internet.

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^[1] Dan Caterinicchia, Hawaii among 16 states hit in video-piracy raids, Associated Press Newswire, August 2, 2007, available at LEXIS, News Library, Wire News Services File.
^[2] Id.
^[3] Id.
^[4] Id.
^[5] Id.
^[6] Id.