07/26/2010: FCC ruled AGAINST Apple and ruled that the practice of "Jailbreaking" Smartphone's Including Apple's iPhone was totally LEGAL. You may still Loose your warranty and Apple can still make Jailbreaking difficult, BUT, you can sleep well tonight knowing that it is no longer technically illegal to JB. Now Go out there and HAVE FUN.
yahoo news is confusing me... because as i'm reading the correct article, the Jailbreaking community got an exemption to the DMCA laws, by the Library of Congress, not the FCC. but heres a more intelligently and correctly attributed article, and the Lib of Congress text..