Finally Apple has made the first formal public statement about its legal stance on iPhone jailbreaking. As expected, Apple believes that iPhone jailbreaking is a violation of the Digital Millennium Copyright Act (DMCA) and infringes on its copyright.
EFF has asked the Copyright Office to recognize an exemption to the DMCA to permit jailbreaking in order to allow iPhone owners to use their phones with applications that are not available from Apple's store. Apple's response is pretty obvious. According to the company, few users of jailbroken iPhones actually jailbroke it themselves. Instead, they downloaded software created by other parties to make that happen. Most likely, this is a correct assumption.
The number of users who use jailbroken iPhone is estimated to be in a region of hundreds of thousands. I've been using a jailbroken iPhone and I can confirm that after jailbreaking, iPhone becomes a totally different device. Great software is available for jailbroken iPhones and I can't imagine giving this up. Recording video, using Siphone for VOIP and Backgrounder for multi-tasking enabling your iPhone - are just a couple of great examples of functionality that iPhone gets after jailbreaking. Finally, iPhone is a great device based on a legendary operating system. After jailbreaking we have a total control on the device and while this might not be important for most of the iPhone users, for technology enthusiasts and power users, jailbreaking is important.
Source: http://www.eff.org/deeplinks/2009/02/apple-says-jailbreaking-illegal
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