What does it mean if an iphone needs icloud activation?

What does it mean if an iphone needs icloud activation?

http://www.macinaminute.com/what-is-icloud-and-do-i-need-it
https://www.apple.com/...oud/setup/

It means the phone is stolen, and is still associated with the Apple ID of the rightful owner. Unless the owner unlocks it for you, it's a paperweight now.