We’ve all heard that possession is nine-tenths of the law. But with the influx of computers and devices connected to networks, ‘possession’ is taking a back seat to who owns the networks and software to operate it.
This issue is front and center for the recycling industry as recently the U.S. House narrowly passed a bill to legalize cell-phone unlocking. Although a step in the right direction, a twelfth-hour insert of a provision to make it illegal for bulk unlocking has put opponents of the provision, including recyclers, on the defensive as the bill moves to the Senate.
A “locked” phone limits the phones resell value because it costs money to unlock. If the phone remains locked, this allows decreases value since it limits the consumers’ ability to choose a carrier. Moreover, a locked phone could be destined to an overseas market where unlocking is allowed, sending reuse and repair jobs with it.
The House bill makes it illegal for recyclers to unlock phones that they own. The higher stakes is a policy that makes it illegal for recyclers to resell used products in the most competitive manner without the interference of a service provider. The biggest money on cell phones is on the resell. A used Apple 5S resells for around $500, whereas scrapped for parts and commodities around $60.
Let’s face it, with the amount of computers in almost everything and growing, this issue is the canary in the coal mine for recyclers. Today the issue is cell phones, but tomorrow the issue is who really owns the cars, white goods, medical devices, you name it, that enters into the recycling facility.
We need action, and we need grass roots. Senate Judiciary Chairman Patrick Leahy has introduced his own
unlocking bill without the bulk unlocking language. ReMA needs to make sure that his bill stays that way. Even though you may not be handling cell phones, this is an issue that matters to the
entire recycling industry. ReMA needs your help to defeat this monopoly of ownership.