I think the title should be changed slightly. The chip isn't legal depending on the laws governing the country you live in. In the USA, according to the gist of the DMCA, any device (ie. modchip) that circumvents built in protection (ie. wiis only allowed to play region specific games) are illegal. The only time a modchip would be legal under the DMCA would be if it has Linux code on it to make the wii do something else (ie. run Linux).