Hacker's Chipping Scam Scuppered

Friday 8th December 2006/ A hacker who offered a "while you wait" chipping service at a computer fair was sentenced to 120 hours community service at Carlisle Crown Court on 23rd November - a landmark conviction for such an offence.

Stephen Fitzgerald of Torridon Road, Bolton, a computer games hacker, pleaded guilty to nine charges relating to 'chipping' games consoles, contrary to the Copyright Designs and Patents Act 1988 (copyright circumvention offences). He was ordered to pay £2,500 towards prosecution costs and subject of a Proceeds of Crime Act (2002) confiscation order for £2,710, to be paid by 23rd May 2007, or face three months in jail.

Fitzgerald was picked up by Police, Cumbria Trading Standards and an ELSPA investigator in April 2004 when, trading as 'www.mods-and-sods.co.uk', he operated a stall at a computer fair held at the Swallow Hilltop Hotel in Carlisle, where he offered to 'modify' PlayStation and Xbox consoles while people waited. His stall also offered and advertised for sale pre-chipped PlayStation 2 and Xbox consoles.

This case stands as one of the first of its kind in the UK, as the criminal offence only came into effect in October 2003. Fitzgerald challenged this interpretation of the criminal law by asserting that a game was simply a computer program and therefore not covered by the regulations.

The games industry has always believed that a game is much more than a computer program, however, containing as they do artistic works, animation, music and film - all of which have protection under the relevant legislation.

Michael Rawlinson, managing director of ELSPA, said: "We have always believed that 'chipping' consoles is a clear criminal offence and the result of this case has confirmed it. This means that people who modify games consoles to enable them to play copied games will now face the full force of criminal law which can lead to substantial fines or even imprisonment".

Phil Ashcroft, Head of Cumbria County Council Trading Standards, said: "This case is extremely significant. The sentence today will send out a warning to 'chippers' and I hope that it will act as a deterrent to people who are thinking of chipping".

Ends.

BACKGROUND INFORMATION

Stephen Fitzgerald had previously been warned about the criminal offences by St Helen Trading Standards department, in a letter in early March 2004 (which he later denied receiving), when he was again offering the same items and service at another computer fair. In July 2004, an ELSPA investigator covertly filmed Fitzgerald yet again operating a stall offering all the previous items/services at a computer fair in Wigan pier and between June and September 2004, he continued to offer his wares on his website (above) and indicate what venues he would be attending throughout the UK.

EDITORS NOTES

1. Fitzgerald was charged in respect of nine offences contrary to the Copyright, Designs and Patents Act 1988, as amended by the Copyright and Related Rights Regulation 2003.

2. ELSPA (Entertainment & Leisure Software Publishers Association) is the trade body that represents the computer games industry.

3. The maximum penalty for breaking the Copyright, Designs & Patents Act 1988 section 296ZB (the 'chipping' provisions) is two years imprisonment +/or unlimited fine.

About ELSPA - http://www.elspa.com

ELSPA (The Entertainment & Leisure Software Publishers Association) was founded in 1989 to establish a specific and collective identity for the computer and video games industry. Membership includes almost all companies concerned with the publishing and distribution of interactive leisure software in the UK.

ELSPA's activities include: Official Chart and Industry Reports, Anti-Piracy UK and EU, PR and Communication, Events. More information on all these activities can be found at http://www.elspa.com.

About Software Piracy and its negative impact on both consumers and industry.

ELSPA estimates criminal gain through computer and video games piracy sits at approximately £540 million. Piracy/counterfeiting is illegal and punishable by fines and jail sentences.

The illegal copying of software poses the very real threat of criminal prosecution and a criminal record, as well as the risk of massive personal financial loss under the Proceeds of Crime Act.

Consumers have no recourse under law for faulty pirated games, which can damage hardware.

Counterfeited/pirated games are often mixed with obscene or pornographic material.

Local and national jobs are lost as result of pirate operations.

Proven links exist between many organised counterfeiting organisations and dealers in drugs and pornography.

For further information on ELSPA or to arrange interviews, please contact: