Google blocks paid apps on unlocked G1 thanks to 'rip and return' loophole

Google has unceremoniously blocked a large portion of the applications in the Android Market from owners of unlocked G1s. Any copy protected application (all of the new for-pay apps) are now unusable, according to an Android Market forum post.

Google told IDG's MacWorld that it is no longer distributing copy-protected apps to reduce the unauthorized copying of those applications.

Nearly a week ago, when paid apps started rolling out to the Android Market. The Android Market's DRM was summarily "busted" (purportedly in less than 12 hours), allowing users of the unlocked phone to download for-pay apps, copy them to a system folder, and return them for a full refund while still keeping them.