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From www.modchip.com What is a ModChip?
The mod chip is an electronic chip that is added to the PlayStation, PS One, PS2 or Xbox game console - modifying it to boot up all CDs. It allows you to play EVERY IMPORT GAME and EVERY CD-R BACKUP. During the Boot sequence the console checks the Boot Information on the Cd. This information is missing on Backups. Import Games show a foreign one. The mod chip injects the correct boot information.
Great when you have kids that damage disks often so when you buy a new game you immediately make a backup copy/s and let them use the backups while you store the original away for when you need to make another (check your local laws out though about both modchips and personal backups as in some countries it can be illegal to have either one or both).
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