[charlie_ps2]

Dunno what the big secret is about.

It is illegal to make pirate copies of games - i.e. to copy games for the purpose of selling those copies.

Judges then interprest associated actions (like making a modchip) against the scene bacground. Channeltech, for example, were banned from making Messiah 1 because the judge ruled that even though people might want to make backups, the risk of piracy was far greater. That ruling in the UK was in January 2002.

So that half answers your question.

The other half can't be answered until the law is tested again.