Modded Hardware Agrees to Settle Nintendo's Copyright Lawsuit for $2 Million

In a significant development, Modded Hardware and its alleged operator, Ryan Daly, have reached a settlement with Nintendo over the copyright infringement lawsuit filed against them in June 2024. The agreement marks a rare instance where both parties opted to avoid a trial, opting instead for a joint stipulation that outlines the terms of the settlement.

Nintendo had filed a lawsuit against Modded Hardware, accusing it of copyright infringement and violating the Digital Millennium Copyright Act (DMCA). The Japanese gaming company alleged that Modded Hardware sold devices designed to circumvent its piracy protections, including mod chips and "MIG Switch" devices. These devices allowed people to play pirated copies of Nintendo Switch games on authentic consoles.

The case is part of Nintendo's broader enforcement strategy to prevent the public from playing pirated games on the Switch console. The company has won several lawsuits in the past, including referring the infamous hacking group Team-Xecuter to U.S. authorities, which led to its demise.

In October 2024, Daly responded to the lawsuit pro se (without an attorney), denying any wrongdoing. However, with his response on record, a trial was scheduled for January 2026, pitting the defendant against a team of seasoned Nintendo lawyers.

Following private discussions, both parties agreed to a final judgment in which Daly agrees that he trafficked in "circumvention devices" and "hacked consoles" that allowed Nintendo Switch users to play pirated games. According to the proposed judgment, this violated Nintendo's rights under the DMCA and the U.S. Copyright Act.

As part of this settlement, Nintendo will be awarded $2,000,000 in compensation, with the stipulation mentioning that Nintendo suffered losses due to the piracy enabled through Modded Hardware. The proposed judgment reads: "Defendant's conduct has caused NOA significant and irreparable harm."

In addition to the agreed judgment, Nintendo and Daly also reached agreement on a permanent injunction. This prohibits the defendant from owning, selling, creating, or trafficking in "Circumvention Devices" such as mod chips, MIG Dumpers, MIG Switches, and "Hacked Consoles". Even linking to third-party sites that offer these devices is off-limits.

Daly is personally restrained from reverse engineering or otherwise tampering with any of Nintendo's products going forward. Finally, the proposed injunction requires the defendant to hand over the moddedhearware.com domain name to Nintendo, while destroying any circumvention devices still in his possession.

The settlement terms are yet to be approved by the court, but it is clear that both parties prefer not to go to trial. A copy of the Joint Stipulation for Entry of Final Judgment and the proposed Judgment and Permanent Injunction can be found on the Seattle federal court website.