[Droid Incredible General] eoraptor:
Digital Millennium Copyright Act, the gift that keeps on giving to lawyers and corporati.

Incidentally, a few clarifications. I see people making the same wrong assumptions about this ruling again and again.

1.) Unlocking your phone is not illegal. What IS illegal is for you, the end-consumer, to unlock or otherwise edit the firmware/OS installed on the phone from the factory. This means that we, the citizenry of XDA and similar forums, are guilty of violations of the DMCA, because the carriers (Sprint, ATT, VZW, etc) actually hold the copyrights to the firmware's installed on the phone.

1a.) The carriers, however, CAN unlock the phone for you, legally. Most of the carriers have come forward and said that they will still unlock devices so long as you have met your original contract obligations. Now, this is great if you've bought a new device. Unfortunately, it means any Non-pay or otherwise blacklisted phone on Craigslist or ebay is still screwed.

1b.) New, Unlocked devices such as Nexus, Galaxy, and Incredible International are still, and will always remain, legally unlocked. The firmware found on these devices is owned by Google or by the device's original manufacture, and they are unlikely to proactively start locking such devices just to lock out the reseller community.

2.) Any device purchased or unlocked prior to January 26, 2013 can still be legally unlocked and used on any compatible network.

2a.) Carriers won't retroactively kick your device off of their network if it is illegally unlocked. Nor can they impose any special usage fines or taxes of utilizing an unlocked device. A "locked" cellphone is one which has been firmware coded to its own carrier's network.

2b.) The only person or group who can take action against you for illegally unlocking your phone is the Librarian of Congress (who made this ruling and is the conservator of DMCA exception law) or the carrier who originally sold the device to you, as they are the ones holding the copyrights to the firmware. They cannot, generally, tell some other network to not host your device. Obviously they can ASK a competitor not to host your unlocked device, but they can't actually stop them doing so.

2c.) The original vendor of the phone (Sprint, ATT, VZW, etc) can, however, sue you under the DMCA for violating their copyrights. This is identical to lawsuits used to penalize movie and music downloaders. However, since phone unlocks are generally not "shared" in the same way that music, movie, and game downloads are, an aggressive lawsuit by a patent troll or copyright bully holds little potential profit because they'd only be able to claim a single violation, not the sort of perpetual resharing that goes on with torrent users.

3.) While jailbreaking/unlocking/rooting a phone is illegal now, re-romming a phone is still a grey area. IE, completely replacing the firmware on your phone with a homebrew is not illegal in the same way that a simple unlock or jailbreak code is. Since you're not technically changing someone else's copyright protected software so much as simply deleting and replacing it.

3a.) Unfortunately, because most custom roms are still based in one form or another on the factory rom, you MIGHT still be sued unless, as in the case of older devices like the DINC, all original drivers and firmware's have been open-sourced to the community. It's unlikely that HTC would go after someone unlocking an Incredible series phone since you can legally root most HTC devices from their website; but other carriers and manufacturer's may not take the same view in the future.

There is also a division between hardware manufacturer's and carriers. Carriers lobbied long and hard FOR this ruling, because it is in their best interest to keep you chained to them for as long as possible, and a person who just spent several hundred dollars on a device is unlikely to be willing to simply ****can that device at the end of two years in order to move to another carrier and repeat the expensive process with a new device (unless you own an apple product, in which you're already indoctrinated to all of this;) ). Sell such a device, yes; dispose of it, no. So having a locked device makes you stickier since you'll use it for longer before parting with it, and if you can only use it legally on their network, then you are stuck with them since you can't resell/unlock it to recoup even part of your investment as you can currently by simply unlocking it or having a reseller do it for you.

Device manufacturers, on the other hand, have a vested interest in keeping their units in use as long as possible, regardless of what carrier it is operating on. Having a unit of hardware able to be reused on multiple carriers breeds customer loyalty to the hardware manufacturer in the same way a reliable car or home appliance does, and increasingly people are seeking out devices based not on the name of the carrier but the name of the phone. Already it's a lot less common to ask who a carrier is than what a phone is; particularly when the same device is available on multiple competing networks.

The best we can hope for is that this will all come to a head in 2 years as the first generation of legally locked phones start coming up for resale and people find themselves face with either throwing them away, sticking with their current carrier, or breaking the law.