Numerous sources are now reporting that the notorious creators of HDLoader and other dubious console products are on the hook for over $9 million in damages after a federal court judge ruled they were in violation of the DMCA by selling modchips. The defendants were accused by Sony of trafficking in modchips as well as the application HDLoader.
One wonders if $9 million will even put a dent in Divineo's deep pockets.The ESA, the video game industry's trade body, has announced that a federal court in California has ordered defendants to pay in excess of $9 million in damages for Digital Millennium Copyright Act (DMCA) violations, including trafficking of mod chips and a device called HDLoader, which allows copies of games to be downloaded directly onto the hard drive of a game console [PS2].
The ESA reports that the ruling came down on September 11 from Judge Claudia Wilken of the U.S. District Court in Northern District of California. Judge Wilken awarded $3,750,200.00 in damages against corporate defendant Divineo, Inc., and Canadian resident Frederic L. She also awarded $5,791,400.00 in damages against corporate defendants Divineo U.K. and Divineo SARL, and French resident Max L.
"Mod chips and HDLoaders are key elements in facilitating video game piracy because they allow people to play illegally copied games on illegally modified video game consoles," said Ric Hirsch, Senior Vice President of Intellectual Property Enforcement for the ESA. "This Court order is very important because it recognizes the significant damage that mod chips and HDLoaders cause the entertainment software industry and delivers the clear message that trafficking in circumvention devices that enable game piracy will result in heavy penalties."
Strangely, no other supposed "scene" sites are posting this news.