When I buy something then that object is mine and I can do whatever I like with it. Crash it, use it as a cup holder, chip it. Will The intended use of a mod chip is to allow the consumer to play legitimately purchased games from overseas. Consumers and people distributing pirated software are the ones breaking the laws. You will find plenty of disclaimers regarding the use of the chip.
All disclaimers state the chip is only to be used for imported games and any other use is illegal.
Console sales will drop considerably by disallowing the consumer to play imported software. All imported software I have seen has either never been released here or we have to wait 12 months or more before the possible release will even happen. If the consumer decides to use a chip for illegal purposes they may face legal proceedings. These consumers and software pirates are ripping Sony off. Chippers only install the chips for purpose of playing import games.