A large modding website operating under the name of 360JTAG.com, that provided consoles capable of booting homebrew code and online mods to games that regular consoles could not perform (10th Prestige Lobby anyone?) - has been shut down by Microsoft.
The site owner has placed an official notice from Microsoft detailing:
Microsoft demands that you immediately cease and desist from distributing all unauthorized Xbox consoles and from engaging in any activity that infringes Microsoft’s copyrights and trademarks. Microsoft reserves the right to seek all viable legal remedies without further notice.
By marketing or distributing Xbox consoles that are modified to circumvent the technological measures used to protect Microsoft.s copyrighted programs, you help to provide unauthorized access to Microsoft.s programs. This activity violates federal law and may subject you to substantial liability. Under the Digital Millennium Copyright Act, distributors of such unauthorized Xbox consoles may be liable for $2,500 for each violation, and repeat offenders face triple damages.
Infringing Microsoft.s copyrights and trademarks can subject you and your company to civil and criminal liability. Even an unintentional infringement of Xbox games in violation of federal copyright and trademarks laws could subject you and your company to civil liability. Further, for willful infringement, federal law authorizes statutory damages of up to $150,000 per copyrighted work and up to $2,000,000 per counterfeit trademark. Intentional violators may also be subject to criminal penalties.
Hopefully within the coming months more and more of these notices are issued to offenders profiting from such exploits.