http://www.engadget.com/2006/12/15/the-lg-ke850-touchable-chocolate/

heard about it from the end of this article criticizing the early iPhone announcement http://www.computerworld.com/action/article.do?command=printArticleBasic&articleId=9008439

“Why the rush to announce iPhone?
It’s easy to speculate about why Apple announced the iPhone so early, so here goes.
The iPhone resembles, at least superficially, the LG KE850, which recently won the International Forum Design Product Design Award for 2007. Both phones do away with most buttons and rely on a full-device display with on-screen buttons. LG hasn’t decided yet if it will sue Apple for copying its design. It’s possible Apple announced iPhone so Apple wouldn’t follow the LG KE850 to market and look like a copycat.”

According to Apple, they hold a patent on their implementation. Touch screens aren’t new, obviously. Touch screens on phones isn’t new either.

The design of the iPhone isn’t the story, it’s what’s on the screen and how you work with it.