Search giant Google has reportedly blocked access to paid applications for owners of unlocked G1s for developers. The Mountain View company has said it can’t allow developer handsets (purchased unlocked at a cost of $400) access to paid or copy protected apps citing piracy concerns.

Google doesn’t offer much in the way of details as to why it’s implemented the change. Macworld reports that in the Android Market support pages, one user asked why certain apps (Shazam and Calorie Counter, if you must know) are no longer available. “If you're using an unlocked, developer phone, you'll be unable to view any copy-protected application, including Shazam and Calorie Counter. This is a change that was made recently,” a Google employee responded.

Basically, the problem seems to be with the destination folder for downloaded protected apps, which is private. According to Macworld (citing a developer from Strazzere.com), the folder is not accessible by the user on locked G1s. However, those using unlocked, developer G1s have access to the folder and could theoretically buy an application, copy it and then return it, letting them use the copied version of the app for free.

Does anyone own an unlocked G1? If so, can you access copy-protected or paid apps? We’re eager to hear what Google has to say on this one. The developers don’t seem happy and it wouldn’t be wise to let them boil over. Macworld reports some developers are considering to revolt by pulling their apps from the Android Market.

Read the full story on Macworld.