Telekom wins court battle to lock Apple iPhone

Gadget News - Wednesday December 12, 2007

Telekom wins court battle to lock Apple iPhone

Hamburg (dpa) - Deutsche Telekom won Tuesday a court battle to keep its Apple iPhone locked, preventing German customers of competitor Vodafone from using the stylish new gadget.

Telekom's T-Mobile wireless division had earlier been forced under a temporary injunction to sell the iPhone in Germany without any calling plan or the software lock which confines users to Apple's chosen marketing partner.

But after full argument of the case in state court in Hamburg, Vodafone's legal claims under German competition law were rejected. The two international companies are the dominant mobile providers in Germany.

Judges said T-Mobile was entitled to limit sales of the 399-euro (588-dollar) iPhone to customers signing up for a two-year T-Mobile contract which costs about 1,200 euros. Both prices include tax.

The software lock has been controversial in all four nations where the iPhone is sold: the United States, Germany, Britain and France. Many consumers want to use bargain calling plans from independent wireless companies.

Hackers can unlock the phones so they can be used on a cheaper network, but this invalidates the Apple guarantee.

The iPhone, effectively an iPod music player with phone and computing features added, has been one of year's most celebrated new products.

For more than a week, Telekom had offered the iPhone with a disabled lock and no calling plan, in line with the temporary injunction.

However it posted a price of 999 euros for the multi-network version, meaning there was no ultimate financial benefit to most customers in forsaking the T-Mobile network.

The unlocked phones would be withdrawn from sale at Telekom outlets as soon as possible, the company said.

Vodafone attacked the verdict, saying it disadvantaged German consumers. It would decide its next move after company legal counsel had analysed the judges' written ruling, which has not yet been handed out.

"We reserve the right to appeal," a spokesman said. Vodafone contended that basic German fair trade laws had been breached, along with laws against business collusion.

The phone is legally on sale without a lock in France.

Vodafone, which vied for the iPhone itself, has warned that other handset manufacturers might copy Apple, offering desirable gadgets to exclusive partners in exchange for a cut from the call-charges revenue.

Industry analysts say T-Mobile passes about one third of iPhone revenue to US-based Apple.

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