ITWorld is reporting that Adobe is preparing their legal team for a lawsuit against Apple over the recent SDK agreement debacle.
Steven J. Vaughan-Nichols reports: "Usually I write about security here, but Apple's iron-bound determination to keep Adobe Flash out of any iWhatever device is about to blow up in Apple's face. Sources close to Adobe tell me that Adobe will be suing Apple within a few weeks."
With the release of iPhone OS 4 beta, Apple altered section 3.3.1 of the developer agreement, banning the use of intermediate computability layers and alternative languages in the App Store. The new agreement effectively renders the Flash-to-iPhone compiler in CS5 useless, something that Adobe has largely touted before the OS 4 announcement.
It is not yet clear what grounds Adobe will base their lawsuit on, but if true, Steve Jobs should be getting a little more than frustrated developer emails in his inbox soon enough.