What rights do you have when modding your console?
Ars spoke to Jennifer Granick, the Civil Liberties Director of the Electronic Freedom Foundation to find out. The news was bad. "With hardware, you can do pretty much anything you want with it. There are very few rules that apply. You buy it, you own, you can take it apart, and that's perfectly fine," she explained. The problem is that no one simply modifies the hardware. "It becomes complicated with modern hardware because it's combined with firmware, the embedded software."
The infamous DMCA states that you can't circumvent any software protection to get at the copyrighted work it protects. If you're using a software exploit or installing a mod chip, you're disabling that protection to allow yourself to run homebrew code, and you're running afoul of the DMCA. "Thou shall not circumvent," Granick told Ars, counting the two ways to break the law. "And thou shall not provide tools to others.
The intent is meaningless. Even if you simply want to modify an Xbox to use as a media center, you're breaking the law, since you've given the system the ability to run unsigned code.