Unlocking the iPhone could invite a lawsuit

IDG News Service -

Hackers who unlock Apple Inc.'s iPhone from the AT&T Inc. network and share the method with 10 million of their closest Internet friends are inviting a lawsuit from the two companies, several intellectual property (IP) lawyers said Monday.

Apple and AT&T may have a legal case against unlockers under the U.S. Digital Millennium Copyright Act (DMCA), especially if they try to sell software code or devices that unlock the iPhone, the lawyers said. But the legal landscape gets a bit complicated -- there's a legal exception to the DMCA's anticircumvention provisions that allows individual mobile phone users to unlock their devices for use on other networks.

So figuring out how to unlock the iPhone yourself is not likely to be a DMCA violation, most of the IP lawyers said. But posting instructions or code online, even for free, may earn you a cease-and-desist letter from an unfriendly lawyer, and selling software or a device that unlocks the phone is inviting trouble, most of the lawyers said.

But there's plenty of disagreement among IP lawyers about the interpretation of the DMCA.

"It's an extremely grey [area], because I don't think the exemption was altogether clear," said Bart Showalter, an IP attorney at Baker Botts LLP in Dallas. "The idea of trying to use copyright to, in a sense, establish exclusivity in a service contract ... is going to be an interesting thing to watch."

John McLaughlin, founder of UniquePhones in Belfast, Northern Ireland, had planned to release software Saturday that would allow users to unlock their iPhones. But early Saturday morning, McLaughlin said he received a phone call from a man saying he was from a law firm representing AT&T. The caller said McLaughlin could be sued for copyright infringement.

Two other groups have claimed to have unlocked the iPhone.

Representatives of both AT&T and Apple declined to comment Monday on possible legal actions against unlockers.

Showalter suggested that unlocking the iPhone and posting code or instructions for free would likely fall under the exception to the DMCA's anticircumvention provisions, thus protecting the unlockers from legal action.

The exception allows circumvention of device controls "for the sole purpose of lawfully connecting to a wireless telephone communication network," according to language from the U.S. registrar of copyrights. So if a hacker unlocks the iPhone, then posts the unlocking code for free, he's engaging in a legal activity and enabling others to engage in the same legal activity, said Michael Lewis, an IP lawyer at Philadelphia-based Fox Rothschild LLP.

If that hacker is sued, he could probably argue that posting of the unlocking code is protected by free speech provisions in U.S. law, according to Lewis.