Five people have been arrested at a computer fair in Wolverhampton accused of selling pirated games, modified chips and modified game consoles. 

The five traders were held overnight following a raid by 30 local police and Trading Standards officers.

Officials also discovered fully operational piracy factories at two of the suspects' homes, comprising four computers, nine burning towers and numerous computer and video game master copies. 

The arrests came after an ELSPA investigator made a number of test purchases at the computer fair on behalf of Wolverhampton City Council Trading Standards. 

The two stalls were offering games and digital media made to order, as well as a chipping service for Microsoft's Xbox and Sony's PlayStation 2 consoles.

Chipped consoles are able to play copied games, including titles illegally downloaded from the internet.

Trading Standards officials found around 50 modified chips and wiring diagrams behind one of the stalls. They also uncovered software for Sony's handheld PlayStation Portable and a large number of pirated PSP titles. 

Michael Rawlinson, deputy director general of ELSPA, explained that his organisation works closely with local police and Trading Standards across the country.

"We were pleased to assist the Wolverhampton authorities in this case and would like to thank all involved for their hard work in uncovering these counterfeiting operations," he said.

ELSPA confirmed that the raids took place on 11 April, although the organisation only released details today.

A financial investigation under the Proceeds of Crime Act is underway which Rawlinson said could lead to serious financial loss for the criminals involved. 

ELSPA estimates that computer and video game piracy currently nets criminals approximately £540m in the UK.