Newly discovered court documents relating to a class-action lawsuit filed against Apple and AT&T in 2007 have confirmed that the two companies originally signed a five-year iPhone exclusivity deal. Engadget quotes a briefing filed by Apple, which reads, “[t]he duration of the exclusive Apple-[AT&T] agreement was not ‘secret’ either. The [plaintiff] quotes a May 21, 2007 USA Today article – published over a month before the iPhone’s release – stating, ‘AT&T has exclusive U.S. distribution rights for five years-an eternity in the go-go cellphone world.’ [T]here was widespread disclosure of [AT&T’s] five-year exclusivity and no suggestion by Apple or anyone else that iPhones would become unlocked after two years… Moreover, it is sheer speculation – and illogical – that failing to disclose the five-year exclusivity term would produce monopoly power….” It remains to be seen whether the five-year exclusivity deal is still in place, however, as it has been speculated that the terms of the two companies’ iPhone deal may have been part of the negotiations over iPad with Wi-Fi + 3G data plans.
Charles Starrett
Charles Starrett was a senior editor at iLounge. He's been covering the iPod, iPhone, and iPad since their inception. He has written numerous articles and reviews, and his work has been featured in multiple publications.