In an attempt to comply with their part of the obligations in the free trade agreement between Australia and the US a law has been introduced that would, if passed, prohibit the use of mod chips completely. This will take effect January 1, 2007- anyone using a mod chip could face fines up to AU$6600. Anyone caught providing the mod chips face a lot harsher penalty with fines up to AU$65,500 and/or up to 5 years in jail. Even journalists or anyone posting information about the chips are not exempt.

The law covers "distribution, offering, provision and communication" and it no longer has to be "in the course of trade."

A draft of the legislation was released for public opinion earlier in the week. One reader from CNet asked what of those that had the chips when they were legal, are they exempt? Required to dispose of the console? Would this law only apply to "newly modded" chips? All good questions which I'm guessing the law makers didn't take into account.

The only exemptions to this law are for use in computer security testing, law enforcement and libraries. Everyone else is SOL.