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If you know how java works, you will never say that again 
Practically, there cannt be any java virus for mobile phone. This is because a java application to use any native function, like a file IO to phone/card memory, either application will prompt every time it does the same, or it have to be digitally signed.
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How about a simple program that constantly overloads the available mem. ??? Or maybe another that constantly send sms's ??? Once u install the java app. it gets almost full control as soon as u launch it ... it can do whatever it wants ....