Just a few hours before its release, UniquePhones' iPhone unlocking software was pulled out because of a call from AT&T which hinted at legal action should the program find its way to the public. The software, which would allow the iPhone to use other wireless carriers besides AT&T, would probably not be released.

According to research conducted by Ars Technica, using the software to unlock phones is ok but distributing it is not. Cell phone unlocking is not uncommon and is in fact legal according to the Digital Millennium Copyright Act (DMCA). It's the user's privilege to allow the phone to connect to any carrier; that's what cell phones are for in the first place.

The DMCA, however, does not address direct distribution of unlocking methods and software and so provides no protection for those who release them to the public. This places UniquePhones in a rather vulnerable state, stuck in a legal gray area that AT&T can exploit.

At least, it's legally vulnerable in America where AT&T fiercely guards its territory. UniquePhones may find that distribution in other countries may have a lot more legroom.