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story category Hacking the iPhone
What repercussions will we see?
(old news - 12:59PM Saturday Aug 25 2007)
tags: legal · wireless · alternatives · security · AT&T
The big buzz in gadget news right now is the fact that a teenager hacked the iPhone yesterday, making it possible to use it with carriers other than AT&T. He’s been working on this since late July, posting regular updates about his progress on his blog. Those who followed the updates know that it took persistence and an absurd amount of caffeine and energy drinks to get the job done. And they also know that the ten unlocking steps that he posted pose problems for the average Joe user because of their difficulty; (Engadget’s software unlock should be easier).

Currently the kid is trying to sell the unlocked iPhone on eBay, although he’s noted that there are much cheaper ways to get an unlocked iPhone. Most people think that they'll start cropping up around the world now that they can be unlocked. He says that the reason to buy this one is to get the chance to own a piece of cell phone history. His eBay auction ends tomorrow evening if you want to get in on the bidding.

The question is, after the auction ends and the initial buzz about this is over, what’s going to happen? There’s been some debate in our forums about the potential legal action that could be taken by AT&T. It’d be difficult for the company to prove any legal violation, but you know how good lawyers can be. Some say AT&T and Apple should just get rid of their exclusivity agreement. T-Mobile is the major carrier that may be affected right now since that’s the network that is currently capable of iPhone use. Oh no, what will this mean for T-mobile’s iPhone competitor, the Sidekick LX being promoted by rap artists Master P. and Lil’ Romeo?!

Related:
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  7. Tuesday Morning Links
  8. Friday Evening Links
Forums » Hacking the iPhone
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NJxxxJon
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Cool

What a good saturday morning article. haha.

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Re: Cool

said by NJxxxJon See Profile :

What a good saturday morning article. haha.
Yep!
Thanks KathrynV See Profile. How many energy drinks do you drink to write BBR articles?
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great

but... im just not sure what a photo of a zune has to do with the iphone hack.
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Ebay chose not to list this....

his auction was pulled.

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Re: Ebay chose not to list this....

Ebay are a bunch of SOBs. They kowtow to every large corporation, even if the company's position is legally unjustified.

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Re: Ebay chose not to list this....

I thought it wasnt pulled off by eBay but that hundreds of users were bidding millions on the auction so the kid cancelled it or something.
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said by Goober See Profile :

Ebay are a bunch of SOBs. They kowtow to every large corporation, even if the company's position is legally unjustified.
ditto! I stopped using ebay a couple of years ago when I learned first hand about how they leave it's sellers out in the cold when it with fraudulent buyers. They need to learn that it's gotten to the point, after paying shipping, you can get better deals in the clearance isles of Targets and Walmart. I do go to ebay motors just to look at pictures of RV's, but other then that.. no Ebay cookies on this computer..

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said by kaila See Profile :

his auction was pulled.
I saw it yesterday when it was at $99,999.99 with 160 bids. if ebay pulls the auction do they still get the listing fees?
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said by kaila See Profile :

his auction was pulled.
No, he ended it early because of all the bogus bids. It went into the millions.

Smart move, ebay would have taken too much on fees for this sale.

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edit:
August 25th, @01:13PM

More discussion here & here on the topic

»NJ teen unlocks iPhone for use on T-Mobile

»NJ Teen unlocks iPhone

»So, who buying an iphone?

Some say AT&T and Apple should just get rid of their exclusivity agreement.
We all know that isn't going to happen. We also know that VERY FEW users of the iPhone are going to unlock it. So few that I doubt AT&T is concerned at all.
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Re: More discussion here & here on the topic

It is all kind of irrelevant now that that unlocking company will be selling software unlocks for "whatever the market will bear" (at least until AT&T try to sue them).

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Re: More discussion here & here on the topic

said by justin See Profile :

It is all kind of irrelevant now that that unlocking company will be selling software unlocks for "whatever the market will bear" (at least until AT&T try to sue them).
sue them for what? If I buy something, it's MINE. I can do whatever I want with it.. include modify it, break it or sell it.
At most all this does is void the warranty.

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edit:
August 25th, @01:51PM

Re: More discussion here & here on the topic

said by pokesph See Profile :

said by justin See Profile :

It is all kind of irrelevant now that that unlocking company will be selling software unlocks for "whatever the market will bear" (at least until AT&T try to sue them).
sue them for what? If I buy something, it's MINE. I can do whatever I want with it.. include modify it, break it or sell it.
At most all this does is void the warranty.
No. Bypassing security systems on a device is against the law. Check out the DMCA sometime. »en.wikipedia.org/wiki/DMCA
In addition to the safe harbors and exemptions the statute explicitly provides, 17 U.S.C. 1201(a)(1) requires that the Librarian of Congress issue exemptions from the prohibition against circumvention of access-control technology.
The Library of Congress made no exemptions for unlocking cellphones.
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Re: More discussion here & here on the topic

said by TK Junk Mail See Profile :

No. Bypassing security systems on a device is against the law. Check out the DMCA sometime. »en.wikipedia.org/wiki/DMCA
In addition to the safe harbors and exemptions the statute explicitly provides, 17 U.S.C. 1201(a)(1) requires that the Librarian of Congress issue exemptions from the prohibition against circumvention of access-control technology.
The Library of Congress made no exemptions for unlocking cellphones.
From another article:

There is apparently no U.S. law against unlocking cell phones. Last year, the Library of Congress specifically excluded cell-phone unlocking from coverage under the Digital Millennium Copyright Act. Among other things, the law has been used to prosecute people who modify game consoles to play a wider variety of games.
»news.yahoo.com/s/ap/20070824/ap_···unlocked

There's nothing special about this phone compared to other phones and "unlocking", is there? There are plenty of places selling unlock software for other phones, even those that are subsidized by the telco selling them. Since those people are not being prosecuted, I have to imagine that article above is correct...

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Re: More discussion here & here on the topic

said by sporkme See Profile :

From another article:

There is apparently no U.S. law against unlocking cell phones. Last year, the Library of Congress specifically excluded cell-phone unlocking from coverage under the Digital Millennium Copyright Act. Among other things, the law has been used to prosecute people who modify game consoles to play a wider variety of games.
»news.yahoo.com/s/ap/20070824/ap_···unlocked

I was wrong. An end user can unlock the phone to connect to another service provider. But it won't be attempted by many, because the Library of Congress did not grant an exemption to those who unlock it for reselling. Those would still be liable under the DMCA.
»tushnet.blogspot.com/2007_03_01_archive.html
The court addressed the recent exemption for certain cell phone-related conduct in the Library of Congress DMCA exemption proceedings. Because that exemption allows circumvention “for the sole purpose of lawfully connecting to a wireless telephone communication network,” the court ruled it inapplicable – defendants were circumventing for the purpose of profitable resale, not connection.

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Re: More discussion here & here on the topic

said by TK Junk Mail See Profile :

said by sporkme See Profile :

From another article:

There is apparently no U.S. law against unlocking cell phones. Last year, the Library of Congress specifically excluded cell-phone unlocking from coverage under the Digital Millennium Copyright Act. Among other things, the law has been used to prosecute people who modify game consoles to play a wider variety of games.
»news.yahoo.com/s/ap/20070824/ap_···unlocked

I was wrong. An end user can unlock the phone to connect to another service provider. But it won't be attempted by many, because the Library of Congress did not grant an exemption to those who unlock it for reselling. Those would still be liable under the DMCA.
»tushnet.blogspot.com/2007_03_01_archive.html
The court addressed the recent exemption for certain cell phone-related conduct in the Library of Congress DMCA exemption proceedings. Because that exemption allows circumvention “for the sole purpose of lawfully connecting to a wireless telephone communication network,” the court ruled it inapplicable – defendants were circumventing for the purpose of profitable resale, not connection.
Maybe you should "Check out the DMCA sometime. »en.wikipedia.org/wiki/DMCA ", as you were so quick to say to another poster.
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said by TK Junk Mail See Profile :

The Library of Congress made no exemptions for unlocking cellphones.
said by TK Junk Mail See Profile :

I was wrong. An end user can unlock the phone to connect to another service provider. But it won't be attempted by many, because the Library of Congress did not grant an exemption to those who unlock it for reselling. Those would still be liable under the DMCA.
Dude,

Get your institutions right. The Library of Congress does not write, make or enforce law. The Library of Congress is just like any other library, they are a repository for documents. You should refer to Congress, not the library.
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Re: More discussion here & here on the topic

said by jtudor See Profile :

said by TK Junk Mail See Profile :

I was wrong. An end user can unlock the phone to connect to another service provider. But it won't be attempted by many, because the Library of Congress did not grant an exemption to those who unlock it for reselling. Those would still be liable under the DMCA.
Dude,

Get your institutions right. The Library of Congress does not write, make or enforce law. The Library of Congress is just like any other library, they are a repository for documents. You should refer to Congress, not the library.
Sorry, but this time I am right. The Copyright Office comes under the control of the Library of Congress and it is the Library of Congress that has the authority to make exceptions to the DMCA act.
»www.copyright.gov/1201/
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edit:
August 26th, @11:03AM

Looks like AT&T/Apple do think unlocking their iPhones is illegal.

»news.yahoo.com/s/infoworld/20070···ld/91354
San Francisco (IDGNS) - Fear of litigation has led to an indefinite delay in the planned Saturday release of software to unlock Apple Inc.'s iPhone.

John McLaughlin, founder of Uniquephones, based in Belfast, Northern Ireland, said Saturday that he received a phone call about 3 a.m. Saturday local time from a man claiming to be from O'Melveny & Myers LLP, an international law firm, calling on behalf of AT&T. The firm has worked with Apple in the past.

The man informed McLaughlin that if he posted the unlock code, he could be sued for copyright infringement and for dissemination of Apple's intellectual property (IP).

McLaughlin is concerned that fighting a lawsuit with AT&T or Apple would sink his small company, which does a modestly successful business unlocking wireless handsets in the U.K. and Europe. At the same time, he and engineers in several countries have invested time and money to come up with the unlock software.

"It really annoys me," he said. "We have the solution sitting there and we have the customers there, but if you connect the two you could lose everything."
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Re: Legal worries delay release of iPhone unlocking software

said by TK Junk Mail See Profile :

Looks like AT&T/Apple do think unlocking their iPhones is illegal.

»news.yahoo.com/s/infoworld/20070···ld/91354
"It really annoys me," he said. "We have the solution sitting there and we have the customers there, but if you connect the two you could lose everything."
He should quietly sell it to some trader in Hong Kong or Singapore who don't mind so much about the long arms of AT&T lawyers.

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said by sporkme See Profile :

said by TK Junk Mail See Profile :

No. Bypassing security systems on a device is against the law. Check out the DMCA sometime. »en.wikipedia.org/wiki/DMCA
In addition to the safe harbors and exemptions the statute explicitly provides, 17 U.S.C. 1201(a)(1) requires that the Librarian of Congress issue exemptions from the prohibition against circumvention of access-control technology.
The Library of Congress made no exemptions for unlocking cellphones.
From another article:

There is apparently no U.S. law against unlocking cell phones. Last year, the Library of Congress specifically excluded cell-phone unlocking from coverage under the Digital Millennium Copyright Act. Among other things, the law has been used to prosecute people who modify game consoles to play a wider variety of games.
»news.yahoo.com/s/ap/20070824/ap_···unlocked

There's nothing special about this phone compared to other phones and "unlocking", is there? There are plenty of places selling unlock software for other phones, even those that are subsidized by the telco selling them. Since those people are not being prosecuted, I have to imagine that article above is correct...
An article TCH failed to mention:

»www.wired.com/gadgets/wireless/n···contract

""I think there's no chance whatsoever that a layperson would understand it and I doubt they could get through it. I think most lawyers wouldn't understand it either," says Fred von Lohmann, a staff attorney with the Electronic Frontier Foundation who in a past career crafted licensing service agreements for a living.

An Apple representative declined to answer questions or comment.

The good news: The document consists mostly of boilerplate that is standard in most wireless contracts, and contains no real surprises. Its unusual length stems from the fact that the iPhone is bundled with several services, each of which has its own licensing agreement.

The bad news: The iPhone contract may not be the last word in overly long and complex user agreements. Terms-of-service contracts promise to grow even more dense, legal experts warn, making them even more difficult to understand than they already are.

That's a problem, because even standard contracts now contain some legally questionable provisions that you should be aware of regardless of the phone and plan you use -- for example, regarding reverse engineering and arbitration."

Considering even some lawyers I know probably wouldn't understand it, the SCOTUS might just throw the "agreement" back at AT&T and say, "This is the most ridiculous legal boiler plate crap we've even seen. Insurance companies ought to hire the lawyers that wrote this crap. We'll just rip, mix, and burn this agreement. Try again when even a lawyer can read it and understand it."
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TCH - Nope! Unlocked phones are sold all the time. If the Razr is sold unlocked, I see no reason the iPhone can be sold "unlocked" to work on another carrier. Companies sell these phones everyday. And, no, it is not against any law including the DMCA. Apple can void the warranty unless the warranty has nothing about AT&T wireless only.

Check out buy.com for unlocked cellphones. I see no one suing them.

»www.google.com/search?hl=en&q=un···llphones

Follow that Google link and find all kinds of companies unlocking phones. Some even offer warranties.

Ebay has a bunch now: »search.ebay.com/unlocked-iphone_···fromZR40
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Re: More discussion here & here on the topic

Click for full size
How about this:

»accessories.us.dell.com/sna/cate···en&s=bsd
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Re: More discussion here & here on the topic

what so great about the iphone??
my pdaPhone with Microsoft mobile 6.0 does ALOT more stuffs then a iphone!
with my pdaPhone, i can control my homepc, even turn homepc on or off remotely! watch my home' cableTV channels with Slingmedia. pair it with bluetooth GPS for driving navigation! surf the internet at 3G speed, that' 600k-800k, that' equal basic DSL speed compare to iphone 10years old technology EDGE give u about 200k!
can iphone does this? haha

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said by John Galt See Profile :

How about this:

»accessories.us.dell.com/sna/cate···en&s=bsd
My point exactly. Unlocking phones isn't illegal. TCH needs to take some law classes.
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edit:
August 26th, @01:38PM

Re: More discussion here & here on the topic

said by supergirl See Profile :

said by John Galt See Profile :

How about this:

»accessories.us.dell.com/sna/cate···en&s=bsd
My point exactly. Unlocking phones isn't illegal. TCH needs to take some law classes.
For resale it is. They are breaking the law based on an Appeals Court decision initiated on a complaint by Tracfone. »www.wired.com/politics/onlinerig···Page=all
The cell phone unlocking exemption covers cases where cell phone software locks are circumvented "for the sole purpose of lawfully connecting to a wireless telephone communication network." Though TracFone's own lawsuits were partially the impetus for the exemption, the company argues the plain language still doesn't apply to the resellers it's suing. "We argued the large-scale unlocking ... was for the purpose of reselling the phone for profit overseas and therefore not subject to this exemption," says Baldinger. »www.copyright.gov/fedreg/2006/71fr68472.pdf
Read the link, Tracfone is winning lawsuits against resellers.
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Re: More discussion here & here on the topic

TCH, Tracphone's argument is ridiculous and doesn't apply to unlocking phones they don't have. Even then, if a person buys a cellphone and wants to use it on another network, why shouldn't they be allowed to?

"But the company isn't above hedging its bets. In 11 lawsuits, the company has hit resellers with a raft of claims, including trademark and copyright infringement, unfair competition, tortuous interference with business relationships, false advertising, harm to business reputation, civil conspiracy and unjust enrichment, in addition to alleged DMCA violations.

The lawsuits target individuals in Georgia, Oklahoma, Michigan, Indiana and California. None have gone to trial, so TracFone's DMCA theory hasn't been tested. But even if the DMCA exemption were found to apply, the defendants would still face the other claims in the lawsuits.

Instead, in six cases the defendants have settled, agreeing to an injunction preventing them from purchasing TracFone phones to be unlocked and sold. In four others, settlements have been reached, but a judge has yet to approve them. The 11th case is pending.

"There are a whole bunch more lawsuits in the pipeline," TracFone's Baldinger said.

Baldinger argues the DMCA exemption was only intended to protect consumer choice, and calls the people he's suing "criminals." Prepaid competitor Virgin Mobile USA agrees. "In the long run, this activity increases the cost of service and makes wireless service not available to people in the lower income areas," said Jayne Wallace, a Virgin Mobile spokeswoman. "We have been involved in going after some of those people."

Clearly, Tracphone is upset over unlocking its cheap phones not everyone else's. Virgin's argument is just ridiculous. Unlocking pre-paid cellphones, most of which are cheapies, is not the market for unlocked phones anyway. I wouldn't pay $50 for those junk phones, locked or unlocked, in the first place and neither would anyone else.

The legal argument you supplied doesn't apply to non-prepaid. Go back to law books.
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said by supergirl See Profile :

TCH - Nope! Unlocked phones are sold all the time. If the Razr is sold unlocked, I see no reason the iPhone can be sold "unlocked" to work on another carrier. Companies sell these phones everyday. And, no, it is not against any law including the DMCA. Apple can void the warranty unless the warranty has nothing about AT&T wireless only.

Check out buy.com for unlocked cellphones. I see no one suing them.

»www.google.com/search?hl=en&q=un···llphones

Follow that Google link and find all kinds of companies unlocking phones. Some even offer warranties.

Ebay has a bunch now: »search.ebay.com/unlocked-iphone_···fromZR40
Seems like you may be wrong about that:
»news.yahoo.com/s/ap/20070829/ap_···YPcE1vAI
Unlocking the phone for one's own use, for instance to place calls with a different carrier, appears to be legal. But if it's done for financial gain, the legality is less certain.

"Whether people can make profits from software that hacks the iPhone is going to depend very much on exactly what was done to develop that software and what does that software do," said Bart Showalter, head of the Intellectual Property practice group at law firm Baker Botts in Dallas.

The U.S. District Court in Orlando found that the DMCA exception did not apply to those unlocking a phone with the intent to resell it.

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said by TK Junk Mail See Profile :

»NJ teen unlocks iPhone for use on T-Mobile

»NJ Teen unlocks iPhone

»So, who buying an iphone?

Some say AT&T and Apple should just get rid of their exclusivity agreement.
We all know that isn't going to happen. We also know that VERY FEW users of the iPhone are going to unlock it. So few that I doubt AT&T is concerned at all.
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edit:
August 25th, @03:39PM

Re: More discussion here & here on the topic

said by Kearnstd See Profile :

the DMCA will never stand up if it gets dragged into the SCOTUS.
Meanwhile it could be very expensive for someone to defend against a lawsuit brought by AT&T.
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Don't forget option 2

It's funny because I saw this story in the paper today and they missed the other iPhone unlock that came out the same day too oddly enough. This software option sounds much simpler.

»www.engadget.com/2007/08/24/ipho···24-2007/

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Re: Don't forget option 2

While the software unlocker sounds a lot easier, the people who wrote the software aren't actually releasing it. Instead they are charging for licenses to use it, which makes me think they'll be around much longer once they get sued by Apple and AT&T.
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lol oh man, AT&T....

AT&T is going to throw a S*** fit now that this can be used for different carriers. Their latest moves will be the following...

1. They will try to throw legal obstacles at the person who cracked it and will threaten people with lawsuits that share the information (As for how, I have no idea, but they'll try)

2. They will start to think of a way to patch it, releasing different firmwares and such.

3. Steve jobs will also feel this because of apples contract with AT&T, AT&T will probably be pointing fingers.

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Re: lol oh man, AT&T....

but will other carriers be willing to activate it?

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Re: lol oh man, AT&T....

said by jeeplikens :

but will other carriers be willing to activate it?
you don't need to get the phone activated, just the simcard. So just plop in the simcard you currently have from t-mobile and you're good to go.
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said by amejr999 See Profile :

I just graduated from the same high school as George did. He is a true genius and I think he's going to be the next Bill Gates. Steve Wozniak.
Fixed it for you... Woz was a true computer genius. Bill G just happened to be in the right place at the right time.
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I traded it for a sweet Nissan 350Z and 3 8GB iPhones. I will be sending the iPhones, unlocked if they wish, to jpetrie(the first donater), gray(the reversing genius), and iProof(who is truly amazing at finding stuff online)
So he traded 2 months of work for a 350Z... not a bad deal!

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join:2001-12-21
Westwood, MA

Re: Phone was traded -- for a 350Z

Cool! I can park my subaru next to his 350Z at RIT:)
krayzie bone

join:2006-09-03
Marietta, GA
whoaaa what are the specs of this car? it's certainly not USDM, its from Japan (notice RHD). seems like a serious tuner owned the car before him...at any rate, sweet ride =)

LaZ3R
Premium
join:2003-01-17
Toronto, ON
clubs:
·Rogers Hi-Speed

17 Year old....

I'm sorry, but if a 17 year old can hack a device created by a bunch of "experienced" (guess not...) employees who apparently worked extra hard on making this phone uncrackable, then this all goes to show how nothing is impossible .

Pathetic. Good job for the kid though... pretty funny/cool that he's the first to crack it.
--
Life is a game of blackjack. You keep playing until you bust.
Lineage

join:2006-10-19
USA

Re: 17 Year old....

We teens are FTW

LaZ3R
Premium
join:2003-01-17
Toronto, ON
clubs:

Re: 17 Year old....

Hahaha, indeed . I wish I could've done it .

ATMW



Everyone forgets that computer code (running a program or routine) is like reading a book. You go down line by line and at a certain point you jump to another section to read a comment and then come back. By passing the jump is all it takes. I can remember coding in a few hex code 00's (non op's) in my old Apple II days to be able to make a backup copy a program. This is no different. The young man most likely read the code and figured out where the jump(s) was/were at and what the software was looking for as a result of the jump. (The routine runs and returns a value so by hard coding in the value, when necessary, one bypasses the check.) The soddering iron might be necessary to be able to write or store the returned value as they (I'm guessing) cut the line where the value was to go (stored) so by restoring the line the storage area is now live again.

Just go to prove that a "fresh mind" that