The question there is: IS IT ILLEGAL, OR JUST NOT COOL TO SELL IT FOR PARTS?
I've already recommended that he give it to the police, but I know he's basically wondering that ^.
No, it is not legal to sell an item that you happened upon in the street (or wherever else you found it, unless it was discarded, in which case it was also discarded illegally lol).
Will you get in trouble (legally?) I sincerely doubt that. It's a much larger offense to pirate movies/music/games, technically speaking, but the number of people that actually get busted is so ridiculously small that the risk is almost nonexistent.
I do question the people that are giving you such a hard time for this, though. It's entirely likely that you try to drop the phone off nearest where it was found and it simply becomes someone else's property (at the establishment where you returned it because it never gets claimed). Morally, I would feel pretty comfortable having tried to call the number and not being able to get anywhere (unsure what you mean by the number not working, but maybe try a few more times). If you do feel bad about finding the phone, just do what someone else suggested and turn it into the police. Probably won't get you anywhere either, but at least your conscience is 100% clear.
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LMFAO at thinking they have this database. they don't.. i would know
you are mistaken my friend.
If you know what provider it is on, you can pretty easily take it to them. They certainly won't give the finder the information, but if the employee wants, he can pretty easily pull up all of that, assuming the IMIE or ICCID is still registered to whoever was last using it.
How often this happens, I am unsure, But the database absolutely exists (just maybe not via the police).