August 27, 2007

Unlocking the iPhone could invite DMCA suit

Intellectual property lawyers split over consequences for users who unlock their iPhones, but agree that trying to sell those secrets likely to lead to legal troubles

"I don't see that [Apple and AT&T] have a choice," Handler said. "They have to do something. If you don't protect your intellectual property, it's gone."

Lewis' colleague, Gerry Norton, agreed, saying the unlocking exception was narrowly written. "The exception was just for the end-user," he said.

Most of the lawyers agreed that selling software to unlock the iPhone, as McLaughlin was planning to do, would invite a lawsuit under the DMCA. "The courts seem to have less sympathy for people who are doing things to make a buck," Lewis said.

But there wasn't even unanimous agreement on the legal liability of selling unlocking software. If the software being distributed targeted only the network lock on the iPhone, the developer could have a defense, Showalter said.

"It does seem a little unusual to me that they say somebody can unlock their phone, but if someone tells them how to do it, that's a violation of the DMCA," he said. "If the software that's being sold is only doing the minimum amount that's necessary to allow it to interoperate with other services, you may have some support in the DMCA exception."

Beyond the legal questions about unlocking the iPhone, Apple and AT&T could face their own legal challenges, Handler said. The exclusive contract between the two companies could lead to an antitrust lawsuit if a competitor or customer could successfully argue there's no other device like the iPhone available on the market, she said.

"Consumers want new technology," she said. "This is the era of the consumer controlling the media. When the consumer is told he or she can't do something, they get pretty upset, and they start claiming conspiracy, antitrust, and the whole bit."

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