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Apple fought hard against the legalization, arguing that jailbreaking was a form of copyright violation. The FCC disagreed, saying that jailbreaking merely enhanced the inter-operability of the phone, and was thus legitimate under fair-use rules.
The upshot is that now anyone can jailbreak or otherwise unlock any cell phone without fear of legal penalties, whether you want to install unsupported applications or switch to another cellular carrier. Cell phone companies are of course still free to make it difficult for you to do this — and your warranty will probably still be voided if you do — but at least you won’t be fined or imprisoned if you jailbreak a handset.
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Gov't OKs Jailbreaking smartphones
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Gov't OKs Jailbreaking smartphones
iPhone jailbreaking (and all cell phone unlocking) made legal