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Yale Law Fellow Derek Khanna on efforts to make it legal to unlock your cell phone.
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The White House has responded to an online petition on its website saying it agrees unlocking cell phones should be made legal again.
On January 26 it became illegal to unlock your phone and that means if you bought your phone with one carrier and wanted to transfer to another carrier.
You can't do that.
My next guest has spearheaded the online petition which is received more than a 1141000.
Signatures Derek Hanna joins me now thanks for being on the show appreciate it.
I wanna start by reminding our viewers what the penalties are for breaking the -- they're pretty -- severe.
He is much of the 2500 dollar fee for a -- per violation.
And -- criminal penalties -- 500000 and or five years in prison for 81 offense.
Tell you why you.
Think this is such a bad idea -- So first of all the prohibition is on users unlocking their cell phones right.
So it's not actually about you jumping carriers is just the technology of all -- your phones even after your contracts done.
So it's really a terrible ruling that was done on behalf of two particular companies.
And it really inhibits innovation and competition.
That's a violation of our property rights because if you own the device you should be able to unlock the device.
Scary idea of the principal people in this industry are gonna say look Derek we make these phones available so cheap.
To consumers otherwise they'd be paying so much more money for these -- how do you respond.
Well obviously I support contract clawed and we all support contract law involved in this movement.
And if it that's between you and your provider.
But the federal government should not get involved in this relationship the federal government should not be saying if you -- -- your phone even after your contracts done.
We're gonna send you to jail for five years that doesn't make any.
Seems extreme to me I've got to say but I wonder if the cell phone industry would be as big as it is today.
If consumers had to carry the full -- a full cost of those bonds because we're talking hundreds and hundreds of dollars or hold up here no one's talking about getting rid of the -- model we all support the -- a -- they're not gonna -- they're not and it you know -- -- whole freight.
If they're not getting out of -- what they want.
Well that's incorrect unlocking cell -- has little has been lawful for the past six years we've had subsidized phones.
Already arguing here is that that law should remain -- remain lawful for you to all mock your phone.
And that that's a violation of your contract -- you -- -- that's your contract provider they can they can find you they can take you to court.
And that -- -- that business model has worked quite well for the -- for the apple industry.
And back over a hundred wireless carriers have come out in favor of -- -- walking including the organization represented T-Mobile and spreads.
Now as you know goal is usually play is -- bound to decide to stop with two year contracts and there's big changes afoot in this industry.
-- let me ask you this question because I think a lot of people have gravitated to your point you started this online petition Republicans and Democrats alike.
Love this why is it has does -- so much universal appeal.
-- -- -- issue that's really important that represents crony capitalism with a -- change on behalf of two particular companies despite the opposition of every other participant in the market.
It's an issue that crowds -- news small businesses and innovation.
It's an issue that hurts the consumer but also violates our property rights so these are all conservative issues that appeal to a wide swath of people cross the right and that's why.
You know Tea Party nation join our coalition the national college Republicans toward our coalition but that we also have diverse array of other actors -- -- public knowledge and conserve I don't -- -- -- Aside so it is bipartisan.
I do have -- Tuesday.
If I have a contract that -- the end of the day awards me -- -- on -- should be myself on right.
Shouldn't be my absolutely.
You should they'll do whatever you want your device and we shouldn't be getting technology without -- good reason to do so.
Well okay so if this prohibition goes away how -- impact marketplace in your -- I think -- lead to more robust competition.
It will allow for new market participants to introduce their -- market models.
Up for what's your contract is over for you haven't all lost device and use it in their carry their provider.
So good example is after your contracts double triple throw their phones a way that doesn't make much sense.
What you gotta provide that offered a sim card with ten hours or fifty hours of talk time that uses an emergency zone.
Those -- the type -- market models that could be allowed in a world where you could unlock your phone.
-- like your phone unlike your mind Derek come on some time and talk to us about copyright -- you've got some really controversial ideas there that are Mary.
Thanks so much appreciate your time think -- we absolutely think so much my pleasure may.
