ask the numerous dealers that have been put out of business by virgin's lawsuits against them. the terms of use included with the phone require the phone to be activated and used on virgin. they are going after dealers that purchase large quanities of their phones to flash. i don't think any of them have gone to judgement, but most dealers don't have the legal (or financial) resources to do battle with virgin. and virgin seems to think that they will win. you won't run into problems if you flash a few here and there, i'm talking about dealers that purchase hundreRAB at a time and flash them for resale.