http://www.cnn.com/2007/TECH/09/01/a...one/index.html

Quote: An iPhone that had the new software appeared to work on the T-Mobile system just seconds after Schulte replaced the AT&T SIM card with a T-Mobile SIM card.

"It's completely software hacked," Schulte said. "There's no case opening required. It's not required to do any kind of disassembly." It took Schulte about two minutes to unlock the iPhone.

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AT&T is SO gonna fight this with every breath in their body. They think they've locked everyone that buys an iPhone into a rock solid 2 year contract.

From a legal standpoint the fight ahead looks to be a very intense and interesting one.

Wonder who will come out on top?