Re-read the OzX news flash ... especially this part ...
"We can,
we already have, and we will continue to
remove our OS from any fake chip. PERIOD." ... and above that ... "No O.S; No chip. Simple enough?"
As you can see, the clones are dying because they have no OS on them. True, some may be dying due to quality issues, but I'll wager it is probably moreso they are losing their OS, so there is no code on the chip to run.
Software ALWAYS belongs to the developer/publisher, never the end user, even publicly licensed software. When you buy an official Xenium, you're also buying the license to use the Xenium-OS. If you buy a clone, you have NOT bought the license to use the OS, so OzX has the right to remove the unauthorized software. Your hardware still works, it's just blank. Like an empty disk. OzXodus has not destroyed your equipment (fake, clone, whatever you wanna call it), they have just removed something you didn't have the right to use, THEIR unlicensed software. Someone is free to develop an OS, or hack the original OS, for the clone chips, I'm sure... who's gonna stop them? I dunno.
Brilliant, if you ask me, because you really can't thwart it. You don't really know whether you have a clone or not until it is dead. Sure, there may be a few who INTENTIONALLY bought a clone, but most of the clone owners probably thought they got the real thing. When their chip dies, the RESELLER is the one who screwed them, not OzXodus. I doubt very many people told their reseller "I want of those Xenium fakes" ... there are a lot of people who get duped with other different kinds of products all the time.
There are people that unintentionally buy "fake" software all the time. Why do you think Ebay had to change their policy on software sales? What happens when that person's newly purchased bootleg MS Office glitches, and they call up MS for customer service, what do they get told? "Sure, we'll help you... "

NOT!! They are promptly told they need to go BUY the REAL thing, no matter how much they just spent on their unlicensed copy. It's the same deal with ACT. I consider the modchip to be MEDIA, like a CD. It is media. It's a flashrom. What you are really paying for is a LICENSE to use XENIUM OS. If you get a fake chip, you don't have the license, and you shouldn't be allowed to have it.