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Apple has filed comments with the Copyright Office as part of the 2009 DMCA triennial rulemaking that Jailbreaking an iPhone constitutes copyright infringement, and if Apple gets their way, will be punishable by death. Alright the last part is made up, but seeing as how this is the first formal public statement by Apple about this, and considering their legal stance on other "unautorized" uses of their products, it sure seems like they could be out for blood.
If you already don't know, the iPhone is the best-selling mobile phone in the United States, and has been designed with restrictions that are meant to prevent owners from running third-party applications that have not been purchased, or downloaded, from the iTunes App Store. It's estimated that there are a few hundred thousand jailbroken iPhones, and a number of instructional videos and programs on the Internet that help get the job done. A majority of the jailbreaking has been done to obtain apps that the iTunes Store doesn't provide like turn-by-turn directions and video recording.
Apple is claiming that jailbroken iPhones depend on modified versions of Apple's bootloader and operating system software, but the court has recognized for a long while that copying software and revers engineering is fair use when done for the purpose of creating independent software. A key part of the law that Apple has seemed to have forgotten about.
EFF.org put it best by comparing fear tactics used by the automotive industry and Apple's public stand on jailbreaking ones iPhone.
"...We'd never accept this corporate paternalism as a justification for welding every car hood shut and imposing legal liability on car buffs tinkering in their garages. After all, the culture of tinkering (or hacking, if you prefer) is an important part of our innovation economy."
Sure there are a lot of iPhone owners who are pleased with what Apple provides for them in the App Store, but if it wasn't for the software pioneers that are out in the world jailbreaking their iPhones, we wouldn't that have ability to turn our iPhones in to some spy tech, or play creepy voyeur with your pets.