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dms3 sued? –
if they are in the UK - and I have seen speculation that they are, then SCEE is most definantly sighting them for shutdown. SCEE has started to become very agressive in applying s296 of the Copyright Designs and Patents Act, and the EU's Directive on circumvention devices is equally harsh and has been applied in a similar fashion. It might be a little more difficult to show that the dms3 was "specifically designed or adapted" to circumvent the ps2's copy protection under s296 given its mutlitude of functions but i think sony's built up a fairly strong body of precedent endorsing the principal that if a chip lets you play backups - its illegal despite its other function.
A side note: These new laws, primarily spurned by the DMCA s1201 and Bill Clinton are encouraging companies which have some copyright interest like sony to engage their own little private armies to prosecute ppl NOT for copyright infringement, but for providing a programable device that can be used for AMOUNG OTHER THINGS copyright infringement. Their private armies have been experts in violating your rights to privacy in a quest to get personal info on you to prosecute you for something that was prior to 2000 NOT ILLEGAL. The robustness of these new copyright laws rests not in how they treat copyright infringement but how they make infringement IRRELEVANT . Sony either doesn't realise this or more likely doesn't care. I haven't seen many cases in the US regarding modchip prosecutions but in Europe and Aus., they seem to be doing alot more and choosing their targets carefulkly like Charlie to make maximum impact - DMS3 will be next if they are in the UK and if they aren't careful.
If you want an unsensitive chip I recommend Ripper 2 Ultra. Definately an underrated chip because people bash it cause it use stolen DMS3 code. It just requires 17-18 wires, which makes it to one of the best chips. I am VERY disappointed to see that the DMS3 team could be behind Ripper like this with their delayed DMS3+.