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MacRumors covers a report today on the Social Apples blog that outlines the strange effects that the most recent iBooks update appears to be having on jailbroken iPhones. According to the story, the update identifies if a phone has been jailbroken, and then will not open any content on that phone that has been previously purchased from the iBookstore. The Social Apples blogger writes that his iPhone had been jailbroken with GreenPois0n, and that since installing the latest iBooks update, he had been unable to open his iBooks collection. This has since been confirmed by jailbreak writer @comex, who says that if you try to open content from the iBookstore that has been embedded with digital rights management code, the latest version of iBooks will run tests to see if your phone is jailbroken. If the tests prove positive, youll then be unable to open any of your iBooks, even if youve already paid for them. The only way to remove the block, as advised by a warning message from Apple, is to restore your iPhone, thus removing the jailbreak.
Source: iBooks 1.2.1 Detects Some Jailbreaks, Disables iBookstore Purchases in Response - Mac Rumors