Originally Posted by KC native
The reasoning behind it is that Note II costs more than $300. The phone companies subsidize your hardware in exchange for long term contracts.
Gizmodo had a good article on this. The previous rulings were in favor of unlocking because there wasn't much competition. Now that there is prepaid with 4G phones, all the companies offering multiple types of phones, etc they felt jailbreaking no longer needed to be protected.
This is how you get those free/cheap phones. If most people knew how much their cell phones cost they would take better care of them.