iPhone Users Strike Back with Lawsuit Against Apple and AT&T

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iPhone Users Strike Back with Lawsuit Against Apple and AT&T

6:30 am on October 15, 2007 | Category: Business, Mobile Devices, Wireless, Cell Phones, Law, Software

Apple Inc. and its U.S. carrier partner, AT&T, have been sued by iPhone users who claim that a recent Apple software update was engineered to illegally disable the handsets of users who downloaded “unlocking” applications that allow the iPhones to function on wireless networks other than AT&T.

The class action lawsuit was filed earlier this month at a federal court in San Jose, California, by two iPhone owners who claim that Apple’s 1.1.1 software update violates U.S. and California antitrust laws by restricting use of the popular handset to a single wireless network.

“Certain iPhones owned by the class were ‘bricked,’ that is, rendered permanently inoperable and, therefore, as useful as a brick,” said the complainants, who are asking to represent all users affected by Apple’s actions. They are seeking total damages of $200 million, which could potentially be tripled under U.S. law if the suit is successful.

Piper Jaffray analyst, Gene Munster, recently estimated that as many as 10% of the iPhones sold in September have been unlocked or modified with third party applications, indicating that the number of potential claimants in this case could be in the tens or even hundreds of thousands.