Nintendo's New York legal team have issued a cease-and-desist letter to a US company that offers to install modchips in Switch for $60. Connecticut-based Logistics Consulting LLC immediately suspended its service when it received the notice earlier this month.
Jenner & Block lawyer Alison Stein (on behalf of Nintendo of America) explains how the installation violates the anti-circumvention and anti-trafficking clauses of the Digital Millennium Copyright Act (DMCA).
Through the mod service you are offering, you literally break open a customer's Nintendo Switch, and then solder the SX Core and SX Lite into the console. By offering to the public an installation service for the modchips, you are offering a service that is primarily designed to circumvent Nintendo's measures and thus violating the DMCA.
Nintendo will not tolerate such baldly unlawful conduct.
It's further noted how Logistics was "aware" Nintendo had taken legal action against certain resellers of these modchips, and yet its own installation services continued. Speaking to Ars Technica, Van Rheen - the founder of Logistics - said he doesn't see how he's breaking the law, as he's not actually selling the chips.
All I'm doing is putting the solder on, how is that breaking the copyright?
While Rheen understands how the chip can be used to pirate games, he believes the device's primary purpose is to export saved games to an external SD card, so users don't have to subscribe to Nintendo's cloud services.
In a statement to Ars Technica, Nintendo of America said it was passionate about protecting its creative ideas and would "vigorously enforce" its IP property rights to ensure it can continue to deliver unique and original experiences to its consumers.