Apple Inc getting “peeled” by new device?

Pan Lei and Pan Yong, the Chinese brothers who invented a device to convert Apple Inc.’s iPod touch into an iPhone, say they are innovators, not copycats.

According to Pan Lei, the Apple Peel 520 is a case including a circuit board and battery that wraps around the iPod Touch media player, allowing calls to be made after software is installed. The device, which requires breaking into Apple’s operating system, isn’t a counterfeit iPhone. The brothers are capable of coming up with something original.

According to the company, the iPod music player has sold more than 220 million units since it was first released in 2001. Apple first released its iPhone in 2007, climbing to 2.7% of the global market by June this year and sparking copycat models from Chinese Grey market, or Shanzhai, vendors.

As per Jonathan Hudis, chairman of the American Bar Association’s Trademarks and Unfair Competition Division, the brothers who invented this Apple Peel probably ran down a list of how many ways could they annoy Steve Jobs. The association members could not see Apple standing by to let this continue, especially if it results in product shipping into the United States.

According to Jill Tan, Hong Kong-based spokeswoman Apple, U.S. users can save at least US$770 by using the device to be priced at US$60. Any product that’s been tampered with, won’t receive warranty support. Apple is aware of Apple Peel.