Much like other mod chips the X-B.I.T. overrides the original Microsoft BIOS.
Similarly in Spain, mod chips are seen as legal despite the EU copyright legislation.
Newer accessories include many home-made things like mod chips to bypass manufacturing protection or homemade software.
I don't think their mod chips were.
The primary method of executing homebrew code required installing a mod chip which could be flashed with a modified Microsoft BIOS.
Certain mod chips enable the use of a USB hard drive or other mass storage device.
The market dealt mostly in unlicensed music and software CDs, videos, gaming consoles with mod chips, as well as video games.
Unlike mod chips, console converters do not circumvent copy protection.
Softmod is also a term used to refer to modifying a Xbox without the use of a mod chip.
This is certainly a hefty punishment that will send a harsh warning out to anyone producing or selling mod chips on American soil.