Man Convicted for... Something?

I wasn't going to blog this one, but it showed up on Slashdot and The Register with a somewhat misleading title. From the BBC article:

Man convicted for chipping Xbox: A 22-year-old man has become the first person in the UK to be convicted for modifying a video games console.

Maybe I don't have all the facts, but it seems mod chipping was not the central issue here. This guy was selling pirated games with each unit, probably \$3,000 in titles for each modded Xbox. Is it any wonder he was shut down? The issue here isn't modchips (which has substantial non-infringing uses, I would argue), but selling software illegally. These are two very different things.