Ryan Daly, operator of Modded Hardware, has reached a settlement with Nintendo following an aggressive lawsuit over the sale of modded Nintendo Switch consoles. The Seattle District Court mandated Daly to pay $2 million and imposed a lifetime ban on his involvement in any form of modding or piracy-related activities.
Daly’s Modded Hardware website sold modified Switch consoles designed to install homebrew applications and pirated Switch games. Nintendo alleged that the business also returned modded consoles pre-loaded with pirated games, a violation of their intellectual property rights and technological protection measures (TPMs) embedded in their consoles to prevent piracy and unauthorized software use.
The legal conflict began in March 2024 when Nintendo threatened to sue Daly if he did not cease operations. Although Daly initially promised to comply, he continued his activities, prompting Nintendo to file a formal lawsuit in Seattle, Washington in June 2024. Notably, Daly chose to respond to the lawsuit without legal representation, denying all allegations and asserting defenses including fair use and accusations that Nintendo acted unethically, though these legal arguments were ultimately unsuccessful.
The court settlement requires Daly not only to pay $2 million but also to surrender his website domain and forfeit all technology involved in the modding business. The settlement’s constraints extend indefinitely, barring Daly from further engaging or assisting in evading Nintendo’s digital rights measures.
This case is part of Nintendo’s ongoing vigorous campaign against piracy and unauthorized modifications of its consoles and software. The company previously secured a $10 million judgment against Gary Bowser, associated with another ROM distribution website, underscoring Nintendo’s commitment to enforcing its copyrights and protecting its platform internationally.
Industry observers note that Nintendo’s strict approach signals an enduring intolerance for piracy activities that threaten its business model, particularly in the console gaming sector, where digital security remains paramount. As modding communities often advocate for homebrew development and hardware tinkering, this area remains legally complex, balancing rights of innovation with protection against copyright infringement.
With this latest lawsuit resolution, Nintendo reinforces its deterrent stance, sending a clear message that unauthorized commercialization of modded devices exposing its intellectual property to piracy will face harsh legal consequences.
