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Apple faces legal blowback on iPhone
By Jim Welte - MP3.com
October 2, 2007 at 02:35:00 PM | more stories by this author

Class-action lawsuit target digital media giant's price changes and software updates, both of which have angered customers.

Apple has been no stranger to iPod-related consumer lawsuits over the years, having dealt with complaints about scratched Nanos, locked formats, and even its trademark white earbuds.

Steve Jobs unveiling the iPhone in January. Steve Jobs unveiling the iPhone in January.

But now its seems that owners of some of the more than one million iPhones that have been sold since its June 29 debut are disgruntled. Two recent moves by Apple--a $200 price cut two months after its release and a software update that rendered some iPhones useless--have drawn the legal ire of iPhone owners.

In the first case, New York City resident Dongmei Li sued Apple last week for "price discrimination" brought on by the $200 price cut, a claim that makes some rather creative claims.

According to documents filed in the US District Court for the Eastern District of New York, Li, who says she bought the $499 4GB model, makes three allegations in the complaint: that early buyers can't resell for as high a profit; that early buyers can't compete with later buyers on the resale market; and that Apple is competing with resellers unfairly.

Li seeks compensatory damages of $1 million, plus punitive damages. Apple officials have not commented on the lawsuit.

In the second allegation against the company, message board activity on Apple'.com and related sites has indicated that a class-action lawsuit could be on the way over Apple's recent software update that rendered some iPhones useless. The move has angered tech-savvy owners of the phone who figured out how to add unauthorized software and even "unlock" it for use on networks other than AT&T, which is the exclusive wireless service provider for the iPhone.

iPhone iPhone

The software update "bricked" iPhones that had been altered or unlocked, meaning that it left them as the iPhone almost impervious to any third-party hacks.

The move has rankled some enough to consider filing a lawsuit against the company. A message board user with the handle "myndex" posted the message "Iphone Class Action Lawsuit" on Apple.com, although the message has since been taken down. The post was a query about user's thoughts about suing the company over the software update.

The situation has one obvious solution according to Apple spokeswoman Jennifer Bowcock, who told the New York Times this week that the software update was preceded by a warning through iTunes to users of unlocked or altered iPhones.

"The inability to use your phone after making unauthorized modifications isn't covered under the iPhone warranty," Bowcock told the paper. "If the damage was due to use of an unauthorized software application, voiding their warranty, they should purchase a new iPhone."

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9 Comments

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well in places like hong kong, you have to mod your iphone in order to use it.

well, eitherways, someone'll hack it eventually. u just gotta be patient.
Posted 10/07/2007 6:33am
All the discussion here is useless I belive that user don't have the right to modify the devices if you do this is by your own risk I did with my iphone and what for I need wifi itunes when I can download the musics anyway tru anotther means? Regarding price drop well if your are a mac reseller for sure the apple will negociate the terms, but ebayer seller are just opportunists for me if I want I pay this is the price you pay for joy!

wait few weeks and a smart hack definitely will deal with this upgrade they always do! Thanks to them we're safe and happy!
Posted 10/06/2007 2:52am
I have an iPhone, and anyone who fiddled and hacked theirs is a grade-A moron. Why would someone do something that voids their warranty, especially knowing that Apple would likely undo their handiwork via an update?
Posted 10/05/2007 2:13pm
I have to fully agree with Apple on this one... Business is business, and the terms for a sale are as specified. A class action law suit to all those who hacked their iphones is a great idea for the FCC to fire back with a mass infraction package. Most of this devices can not be hacked as per FCC regulations. As for the iphone's price drop... business is business... a price drop is normal... I bought my PS3 for 600 bucks and it may drop its price to 500 or less with an 80gB HDD... I wanted to have it first... that is the PRICE to pay,
Posted 10/04/2007 2:19pm
RoC1909 I agree with most of what you're saying, but I think you're going too far. Two months is not enough time for a price cut on such a expensive item, period. I don't care who makes it, it's BS, and that's why Apple offered a rebate program. Now the whole update that bricked some phones.... I know that it's Apple's right to do something like that, but MS didn't do that to people with extra copies of Windows, they just get an annoying popup about getting a new version. Which one of those two choices would make you as a consumer continue to use that company's product? It doesn't matter though, someone else will crack the fix and Apple will have to just suck it up and start working with other networks, or spend more money "trying" to stop it. And yes, this is not like sugar in a tank, but just as annoying. "I am sooo sick of these idiots circumventing the ways of how a item is ONLY supposed to operate. " Seriously man, reedit your post and take that part out. If the world followed your advice, we'd never have a new invention.
Posted 10/03/2007 11:01pm
I say TOUGH CR** about the people who bought it early and THINK that they are getting the shaft now. No one held a gun to your head and said you need to have this and if the price dropped as it did, too bad!! Early adopters need to pay a price for the latest tech. As for the idiots that modified there phones, HAHAHAHA. That's what you get for messing around. Apple wanted the iPhone to be used on the ATT network ONLY!!! I a person didn't want to use said ATT network, then don't get a iPhone. I am sooo sick of these idiots circumventing the ways of how a item is ONLY supposed to operate. If Apple wanted the iPhone to work on T-Moble, Verizon or any other provider, they would have enabled it. I am so happy that idiots and their EXPENSIVE investment are getting hosed!!

@VegetaMaelstro

Ya....whatever. How can you EVEN compare SOFTWARE to something like a car?!?!? You ever heard of something called a EULA??? How about a EULA for vehicles?? And Ford putting sugar in gas tanks?? How do you EVEN make a situation like this relate to what Apple is doing??? I bet you are one of the one's that Apple "taught a lesson to". Your mistake, live with it.
Posted 10/03/2007 8:27pm
i seen this coming as soon as they dropped the price and i totally understand why it would get to this point. it is like being penalized becaused you wanted something first.
Posted 10/03/2007 1:40pm
nice
Posted 10/03/2007 12:20pm
Just as with the Xbox 360, if you bought the machine then you should be able to modify it anyway you please without the manufacturer trying to render it useless. Thats like if you bought a Ford truck and wanted to put a Chevy engine in it. Would if be alright for Ford to secretly put sugar in your gas tank to destroy your engine? Of course not but for some reason Apple and Microsoft seem to think it is okay.
Posted 10/03/2007 10:53am
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