Apple has spoken its official word on iPhone unlocking:
Most of the iPhone unlocking hacks modify the firmware of the modem, which is why a full restore does not affect them. It's possible to re-flash the firmware to factory condition, and if Apple is to be believed, you'd better do it quick: an iPhone update is due this week (probably v1.1.1).
Apple has used software updates to break hacks in the past: When iTunes Fairplay DRM was circumvented using a piece of software called Hymn, an iTunes update patched the hole (although of course a new version of Hymn came along soon enough). This is the first time we know of, though, that an update might actually kill the hardware, proof that Apple is serious about keeping the handset with its partner carrier AT&T (or that AT&T has been putting the pressure on Apple).
Legally, this is interesting. The DMCA (Digital Millennium Copyright Act) was amended last year to allow the unlocking of phones (PDF of Government report. See Page 48). This means that you are allowed to circumvent any protection in order to run your phone on the network of your choice. And although Apple is not specifically trying to break hacked handsets – Phil Schiller told AP "This has nothing to do with proactively disabling a phone that is unlocked or hacked", the company could find itself on the wrong end of another lawsuit.
If you're still feeling brave about hacking your iPhone, head over to the latest post on our How to Wiki: Jailbreak your iPhone.
Press release [Apple/Yahoo]
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