This topic is the very reason that all of my furbabies and their offspring are chipped. Long story short, one of my puppies was happily reunited with their home solely on the chip. The founders removed the harness and tags. And, had it not been for a concerned neighbor that saw the lost dog signs posted, this baby would never have been returned to its rightful owners. The police did a simple scan of the chip and the dispute over ownership was resolved.
Now, as with almost every thing, there is a flip side to chips. I have read that ownership has been challenged due to founders of lost animals changing the registration to them. This to me just
SUCKS!!!

Just like Cookie2 mentioned, there really needs to be some sort of chips made with gps!