Finally, iPhone gets copy and paste between applications. However, it doesn't come from Apple, but from MagicPad developer Zac White. Cali Lewis, from GeekBrief, got the scoop on his new OpenClip open-source framework, which will enable any developer to implement copy and paste between applications without violating Apple's developer agreement.
OpenClip creates a shared space on the iPhone and the applications that use OpenClip have read and write access to the shared space. So, the application does not have to run in the background and any app that uses OpenClip can use the shared space as the Clipboard for Copying and Pasting.
Heres a video of Cali Lewis from GeekBrief with the OpenClip video from the developer: