The lawsuits are coming in now.
Here's a post from a guy who used to be a Mac Genius:
http://eggfreckles.net/notes/error35/
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Error 35 is the result of the Secure Enclave, where fingerprint data is kept, failing to pair with the Touch ID sensor, where fingerprint data is captured. A malicious Touch ID sensor could steal an iPhone owner’s fingerprints. It could unlock the iPhone without its owner’s consent. And it could make purchases using Apple Pay without the owner’s permission. Apple Authorized Repair Technicians use a diagnostic test to pair the Secure Enclave with the Touch ID sensor whenever one is replaced. Third-party iPhone repairs do not preserve this pairing. Error 35 is the price Apple’s customers are paying for having unqualified service technicians repair their iPhones.
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As for the agreement, here's what it says under termination:
http://images.apple.com/legal/sla/docs/iOS91.pdf
Quote:
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6. Termination. This License is effective until terminated. Your rights under this License will terminate automatically or otherwise cease to be effective without notice from Apple if you fail to comply with any term(s) of this License. Upon the termination of this License, you shall cease all use of the iOS Software. Sections 4, 5, 6, 7, 8, 9, 12 and 13 of this License shall survive any such termination.
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And there's also this:
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(d) You may not, and you agree not to or enable others to, copy (except as expressly permitted by this License), decompile, reverse engineer, disassemble, attempt to derive the source code of, decrypt, modify, or create derivative works of the iOS Software or any services provided by the iOS Software or any part thereof (except as and only to the extent any foregoing restriction is prohibited by applicable law or by licensing terms governing use of open-source components that may be included with the iOS Software).
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And this:
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7.4 APPLE DOES NOT WARRANT AGAINST INTERFERENCE WITH YOUR ENJOYMENT OF THE iOS SOFTWARE AND SERVICES, THAT THE FUNCTIONS CONTAINED IN, OR SERVICES PERFORMED OR PROVIDED BY, THE iOS SOFTWARE WILL MEET YOUR REQUIREMENTS, THAT THE OPERATION OF THE iOS SOFTWARE AND SERVICES WILL BE UNINTERRUPTED OR ERROR-FREE, THAT ANY SERVICE WILL CONTINUE TO BE MADE AVAILABLE, THAT DEFECTS IN THE iOS SOFTWARE OR SERVICES WILL BE CORRECTED, OR THAT THE iOS SOFTWARE WILL BE COMPATIBLE OR WORK WITH ANY THIRD PARTY SOFTWARE, APPLICATIONS OR THIRD PARTY SERVICES. INSTALLATION OF THIS iOS SOFTWARE MAY AFFECT THE AVAILABILITY AND USABILITY OF THIRD PARTY SOFTWARE, APPLICATIONS OR THIRD PARTY SERVICES, AS WELL AS APPLE PRODUCTS AND SERVICES.
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This is from the 9.1 software license. The iPhone hardware license hasn't been updated since 2013.