Legal or Not, IPhone Hacks Might Spur Revolution (http://www.wired.com/politics/onlinerights/commentary/circuitcourt/2007/08/circuitcourt_0829?currentPage=1)

I won't paste the whole thing here since it gets pretty involved and technical.  But basically, iPhones are programmed to only work with AT&T, but people have been reprogramming their phones to work with any carrier.  AT&T is trying to sue people for it.