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Thanks Slashdot. Sony and Channel Techonology (the PS2 mod maker) had their day in court yesterday, and Sony won. More information on this ground breaking case can be found below.

Judging from the statement posted on Channel Techonology web site, the judge made some far reaching statements...

The Messiah defeated the Copy-Protection mechanism, and this part of the design SPECIFICALLY was dealing with the use of backup material as a function. The judge acknowledged that indeed it may be useful to have a backup of software as allowed under the CDPA 1988, and there could possibly be cases of 'where necessary', but also the aspect of 'swapping' of backup disks between people would be uncontrollable, and damaging to Sony as nobody would obviously pay £25-45 for a game, therefore 'piracy' becomes the main factor for consideration above all other. Therefore on this basis alone, Judge Jacob awarded the Summary Judgment to Sony.

Judge Jacob stated that Sony licensed games for the territory that they were issued, the licensing of these games did not allow for their use in other territories, therefore whether they were imported for private and domestic use by personal purchase for instance via the internet, or purchased abroad on holiday, they were not allowed by Sony to be played outside of the licensed territory, this argument should be upheld. The technical reason for the decision being based upon the fact that a game that is run without permission makes a copy of copyright material in memory, this copy is 'infringing' because it is an unauthorized copy argued Sony. Basically, this 'controversial' statement made it illegal to play games purchased from abroad.

And in a statement from "Gazza", on Channel Techonology web site :-

The line is now drawn in the sand in the UK, everyone involved in matters relating to modifications to equipment that plays licensed regional and copy-protected material in digital form that produces a copy in memory must now decide which side of the line they stand. The market for such modification devices is surely now going to be driven underground.

News source: Channel Techonology

Growing Net Threat

The FTC said the growth of the Internet is driving an increase in scams, including: unscrupulous auctioneers; failure to deliver goods on time, as promised or at all; and deceptive offers and hidden charges surrounding Internet and computer services.

"The Internet's coming on," FTC spokesman Derick Rill told NewsFactor. "You see more and more Internet activity, and with that you see accompanying fraud."

Stevenson said the Internet service and computer complaints covered such things as ISP trial offers with unclear terms or difficult canceling procedures, Web design and maintenance services with undisclosed site charges, and equipment purchased online.

Ferreting Out Fraud

The FTC said the number of complaints, particularly about identity theft, has risen sharply since the establishment of online reporting and dissemination of a toll-free phone number (1-877-FTC-HELP).

The FTC's Stevenson told NewsFactor that the 204,000 fraud complaints filed in 2001 are about double the number of complaints recorded in 2000.

"Fraud hasn't doubled," Stevenson said. "Certainly, some of what this reflects is increased outreach and increased willingness to report fraud."

The FTC's Consumer Sentinel database collects complaints from more than 50 law enforcement and private sector partners, with data contributed by such groups as the National Fraud Information Center, Canada's Phonebusters, the Internet Fraud Complaint Center and local Better Business Bureaus.

Protection Tips

Also prominent among the top consumer fraud complaints were: shop-at-home catalog offers; advance-fee loans and credit protection; prizes, sweepstakes and gifts; and business opportunities and work-at-home plans. The FTC warned consumers to disclose credit card and other information only to companies they know and trust.

The commission advised Internet users and other consumers to "walk away" if a company does not clearly list its name, address and telephone number.

"A Web site alone or a mail box drop should raise suspicions," the commission said in a statement.

Howard Beales, director of the FTC's Bureau of Consumer Protection, called the Sentinel database "a valuable tool for state and federal consumer protection agencies that investigate and prosecute fraud."