From what I gather (correct me if I'm wrong), a 'mod chip' is simply a replacement ROM chip. It's software.
And like with all software, selling copies without the copyright owners permission is called piracy. Software piracy has pretty much always been illegal.
And so, in reality, there is nothing new here.
The same has occurred in Australia, and I support it.
'MOD chips' seem to have no use other than to run pirated software IMO.
