The Sydney retailer was installing chips that break regional
coding, known as mod-chips, in Australian-made PlayStation consoles
and selling them. The modified consoles allowed users to play games
bought from anywhere in the world and back-up copies for the
purchased games they had made themselves.
Sony uses regional coding to divide the global PlayStation
market into three different geographically exclusive zones. So, the
coding in an Australian-made PlayStation console is only compatible
with games purchased in the same region.
Sony claimed in its case that this practice of regional coding
protects its intellectual property by preventing piracy, and that
modifications to the machines infringed its copyright.
According to the decision, however, Sony failed to prove that
the regional coding was simply a means of copyright protection.
Therefore, the modification chips were not proved to be violating
Australia’s copyright laws.
The Australian Competition and Consumer Commission, which
supported the retailer, welcomed the decision saying that
“Australian consumers can now enjoy games legitimately bought
overseas, as well as authorised back-up copies, by legally having
their consoles chipped.”
Sony points out that the ruling contrasts with recent UK and
Canadian decisions, which were in favour of the company. Sony
Computer Entertainment Australia said that it was in discussions
with its parent company, considering an appeal.
Sony has also sued Stevens of selling pirate copies of
PlayStation games. The case has yet to be heard.
