The Electronic Frontier Foundation (EFF) has petitioned the Library of Congress to officially protect phone owners who bypass software restrictions on their phones—aka "jailbreaking." Apple has just filed an objection, arguing that doing so would infringe on their copyright.
If Apple gets it's way, it would have the right to claim statutory damages of up to $2,500 "per act of circumvention." People who jailbreak phones, might even be subject to criminal penalties of as long as five years, if they circumvented copyright for a financial gain.
The big question, of course, is who really owns your damned phone? Apple says that bypassing their software restrictions messes with the "chain of trust" they've set up and screws up their "ecosystem." The EFF counters that if you apply Apple's argument to any other industry, it falls apart.
The EFF has set up a "Free Your Phone" website where you can follow the case as it moves before the Library of Congress: http://www.freeyourphone.org/.
