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We're pleased to be joined today by Brian Banner, an attorney with Rothwell, Figg, Ernst & Manbeck who has been following the story of the teenager who recently modified his iPhone.

DDJ: Brian, George Hotz, a 17-year-old from New Jersey, recently posted a method of getting an iPhone to work on compatible systems other than AT&T. From what you can tell, is what he did legal?

BB: Yes, it is legal since it is his equipment once it is paid for. Under the first sale doctrine, the creator looses control over the equipment purchases subject to the patent and copyright laws. Of course, what George Hotz did breaches the warranty from Apple since he had to open up the iPhone, soldered new stuff to existing circuitry, and "unlocked" the iPhone handset phone from its link with AT&T services. No repairs or replacements from Apple once that is done.

DDJ: What can AT&T/Apple do about it?

BB: Apple cannot stop this. As long as AT&T gets its monthly service fee (part of the basis of the original sale) there is nothing AT&T can do to prevent the non-use of its services for other services.

DDJ: How far can iPhone owners go in legally modifying the hardware or software?

BB: They can do what they want with their own expensive equipment, including destroying it. Of course the software cannot be reproduced and distributed to others, but it can be legally turned off or disabled or perhaps modified slightly to run on other service provider systems.

DDJ: Is there somewhere readers can go for more information about these issues?

BB: I do not know of such a place; ask a teenager.

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