FOR IMMEDIATE RELEASE

Cybersource Applauds Pro-Consumer Decision in Sony Chip-Mod Case

Australia, 18 October 2005

This month's High Court of Australia ruling against Sony was a win for
IT industry, consumers, and -- although they won't admit it -- even Sony
themselves. With intellectual property now on the agenda of trade
treaties all over the world, this ruling sets a new benchmark in the
protection of consumers' usage and property rights, and is sure to be
studied by legislators and judges all over the world.
 
"The High Court has effectively defended all Australians' rights," said
Cybersource spokesperson Steven D'Aprano. "Under Australian law, we have
the right to make backup copies of software for our own personal use. 
This is not piracy. Games, more than most software, need the protection
of legal backups. The typical piece of business software might be
installed once, and then the CD may not be needed for months or years.
But the Playstation needs access to the CD every time you play. And as
parents know, young kids can wreck a disc in no time."

D'Aprano pointed out that Sony's aim wasn't just to fight piracy. 
"Playstations don't just deny access to illegally copied games, but also
to completely legal games if they were purchased overseas, and games
developed by independent software companies. Sony's aim is to shut down
parallel importing and independent development of software they don't
control."

"At heart of the issue is the question, who owns the Playstation you
paid good money for? Sony says they do, and they make the decision as to
what games you are allowed to play. Bought a game in Europe or Japan and
want to play it here in Australia? Sony says no. Want to play a game
developed by an independent software company not affiliated with Sony?
Sony again says no. Play your legal backup? Sony still says no.

"Fortunately, the High Court agreed with the common sense view that if you
legally and legitimately buy a Playstation, it belongs to you. You are
allowed to play legally purchased games even if they come from overseas,
your legal backup copy, and games written by software developers who
compete with Sony. If you have to install a mod chip to exercise those
rights, then mod chipping should be allowed.

"This ruling is obviously good for consumers. It is good for Australian
IT innovation: there are millions of Australian Playstation users, and
yet the local industry creating software for that market is needlessly
constrained, simply because Sony holds the reins with such an iron fist.
This ruling may allow the innovative Australian games industry to have
another look at developing software for the Playstation market.

"Finally, although they will never admit it, this ruling is good for Sony
too. Mod chips and independent software adds value to the Playstation. 
That's basic economics, and it explains why people are willing to pay
extra for mod chips and region-free DVD players. The more valuable the
Playstation is to people, the more Playstations they will buy and the
bigger Sony's market becomes."
 
D'Aprano warned that while consumers and the IT industry won this
battle, we might still lose the war. "The US-Australian FTA makes this
sort of ruling very difficult. According to the infamous Chapter 17 of
the FTA, we have until 1st January 2007 to change our copyright laws.
There are powerful lobby groups who want to put IT in a strait-jacket,
and don't mind selling out Australian consumers and industry to do it.
They would like to kill off mod chips, parallel imports, independent
software developers, and the right for consumers to make usable backups
and modify hardware they own. Our government must be diligent in
ensuring the fine line it walks can satisfy the letter of the FTA
without hurting Australian interests."


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