Technically it is, yes (at least in the USA). However, noone has ever been prosecuted. As long as somebody isn't selling modded chip games, I don't think they have anything to worry about. That is, as long as their modded wii is for personal enjoyment.
having the chip isn't illegal, but it will void your warranty.
However, havig copied games is. It is a breach of copyright legislation, and being caught in possession of these games could lead to legal implications. My advise is to steer clear of this.
i think you would find that international copyright laws prevents the doing of that, and obviously your country doesn't have the correct enforcement to stop the copying of wii games and copyrighted materials. I think that you will find that all of the games will come with a copyright notice and they will have the copyright to prevent unauthorised copying, hence what is being done is CLEARLY ILLEGAL and hence proving you wrong
It is legal to make a copy of a game, video music you already own.
If you are worried about damaging a game then a mod chip is good to use as you can use the copy as often as you like and it don't matter if it gets damaged as you can just make another one.
One example, I legally own over 1000 original retail music cd's, I have made copies of all the ones I listen to in my car, if my car ever gets broken into, the thiefs have only made away with a couple of quids worth of blank cd's and not Ãƒâ€šÃ‚Â£100's worth of actual cd's.
Its the same with consoles, fitting a chip it perfectly legal, after all the console is yours to do as you please. It's owning copies of games you do not own which is illegal.
Fitting a chip also allows you to play some perfectly legal import games which you can not do with out a chip.
I was just going to add also, the people who get in trouble are not the ones who download and play copies like every day people who just download the odd game here and there, the law isn't too bothered about that, the law goes after the big time copyright breakers who mass produce copies to sell to make a living as these people cause more damage to the copyright world then people like me or you.
One company for example:
these have a whole website selling copied games, infact they have a whole factory making these games. They do it professionally, they press the discs and not burn them from a normal disc burner.
A friend of mine got some old Xbox1 games from here a few years back and although copies you could not tell the difference between these copies and an original. It is companies like this the law is more concerned about.
the law also looks for those who frequently download. so if you download them a lot you could be getting monitored. they look for the bigger players in copyright infringement, and tend to ignore the smaller wrong doers