By embracing ChevronWP7, Microsoft has legitimized hardware jailbreaking and created two separate paths for users -- they can stick with Microsoft's approved software offerings in the Marketplace, or install ChevronWP7's app and source software from just about anybody who wants to make their work available. No doubt the ChevronWP7 license agreement will make it very clear how risky this could be.

It's not clear if the ChevronWP7 Labs will sell apps, or merely offer them for free download. The team's brief announcement hints at a subscription structure to "offset costs."

Last year after Apple and other companies claimed it was prohibited by the Digital Millennium Copyright Act (DCMA). However, jailbreaking an Apple or Google Android-based phone is still far from easy, and often involves risky procedures and questionable software that can "brick" a phone -- corrupt its firmware so it's permanently broken. Here at least ChevronWP7 allows Microsoft to take the lead.

Because companies like Apple frown on jailbreaking, an arms race of sorts arises whereby operating systems updates block the exploits that allow jailbreaking to work, until the jailbreak hackers find a new way to bypass the prevention measures.