GAMES console makers such as Sony Computer Entertainment and Microsoft may need to re-engineer anti-piracy technology in consoles made for the Australian market to stop consumers using illegal game titles, according to law firm Minter Ellison.
Amendments to Australia's copyright laws expected to be passed this week will make it legal for consumers to use modified chips (mod-chips) that circumvent anti-piracy technology built into game consoles if they also overcome measures that restrict the use of DVDs and games titles purchased legally in other regions.
Minter Ellison special counsel Carolyn Dalton said technology measures designed to restrict use of copyright material in geographic regions, including coding built into DVD players and games consoles, won't be given special protection under the law.
Games manufacturers will need to have technology in their consoles to deal with region coding and copyright protection that operate independently.
"I think people are just going to have to sit down and think about manufacturing standards," Ms Dalton said.
Sony lost a High Court battle to outlaw mod-chips in Australia in October 2005.
The hearing ended a three-year battle against backyard mod-chip supplier Eddy Stevens, which reached the full bench of the Federal Court.
Sony asked the court to interpret parts of Copyright Act dealing with technological prevention measures to include access control measures in its consoles, thereby outlawing the use of mod-chips Mr Stevens was selling.
The federal Government was expected to amend provisions of the Copyright Act dealing with TPMs to make mod-chips illegal as part of its obligations under its Free Trade Agreement with the US.
However, Minter Ellison said, changes to the law incorporated in the Copyright Amendment Bill 2006 and presented to the Senate in October only outlaw chips in cases where they have the sole purpose of overcoming anti-piracy technology.
Attorney General Phillip Ruddock rejected recommendations by the Senate's standing committee on legal constitutional affairs that the Bill's wording be amended to outlaw the chips that overcome region coding.
Sony declined the opportunity to comment on the new laws when contacted late yesterday.
The Australian computer games industry's peak representative body, the Interactive Gaming Association of Australia, was unable to comment on the new laws in time for publication.
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