Wall Street Journal said:Apple Inc.'s control over its iPhone and other devices via its iTunes store was undercut Monday by a federal ruling legalizing jailbreaking, or altering the devices to install unapproved software, a practice used now by a small number of customers.
The Library of Congress, which helps oversee copyright law, removed a legal cloud over altering of iPhones, iPads and iPods, to install and run software not purchased from Apple.
Jennifer Granick, civil liberties director at Electronic Freedom Foundation, the digital-rights organization that pushed for the change, said the ruling could open the door for third-party app stores. "Innovators now know that there will be customers for them," she says.
Apple has reviewed and maintained veto power over apps for the iPhone since it opened the device to outside developers in 2008. These apps can only be downloaded from Apple's App Store. Monday's ruling applies to other smartphone makers but only Apple now restricts what apps can run on its devices.
Mario Ciabarra, president of Rock Your Phone Inc., which sells apps for jailbroken iPhones, says close to $2 million worth of about apps for about four million iPhones have been downloaded from his store. He said the company felt that what it was doing was legal, but was not eager to argue that point in court. What this ruling does "is make it very clear that it is okay," he said.
Apple, which says it has sold about 50 million iPhones worldwide, has discouraged jailbreaking. A spokeswoman did not address the ruling directly, but explained the company's policy.
"Apple's goal has always been to insure that our customers have a great experience with their iPhone," she said, adding that "jailbreaking can severely degrade the experience" of the iPhone and that it "can violate the warranty and can cause the iPhone to become unstable and not work reliably," she said.
Source: http://online.wsj.com/article/SB10001424052748704700404575391570601360494.html?mod=googlenews_wsj
After hearing this news, I pretty much jailbroke my iPod Touch immediately. So, I think this is great, as it allows small developers to publish their apps on third-parties such as Cydia without having to go through Apple's strict regulations, and users will be able to download a wider variety of programs than what's available on the App Store.