Sprint proves money can solve problems, buys iPCS to settle litigation
[Via Reuters]
sue posts
At last, it's over. InterDigital, which is best known for its episodes in the courtroom with Samsung and Nokia, has finally reached an agreement with the former firm. The two have been at each other's throats since April of last year regarding patents allegedly used in some of Sammy's more sophisticated phones. The decision was reached just a day before the US International Trade Commission was set to rule on whether to recommend barring affected Samsung imports altogether, which we can assure you was not at all coincidental. There's been no public disclosure of settlement value, though one analyst at Hilliard Lyons estimates that Samsung will be coughing up $400 to $500 million over the next five years to make this problem go away. Talk about a recurring nightmare.
We told you it wasn't over, and now, that once "manageable" $73 million payment could possibly balloon to upwards of $1.2 billion. As predicted, the prior suit -- which was held in a California state court -- has led to a far reaching class-action lawsuit that could "potentially cost the company as much as $1.2 billion." The suit alleges that the $150 to $200 fees violated the Federal Communications Act and laws in every state of the country, and when summed from 1999 to 2008, they total a magical $1.2 billion. Things aren't looking great for Sprint on this one either, as lawyer Scott Bursor is running the show. Who's he? Just a guy who was involved in getting Verizon to fork over $21 million for the same thing earlier this year.
We figured back in August that Verizon (and LG) would eventually be forced to pay up in order to keep visual voicemail on its handsets, and sure enough, that's exactly what has gone down with the former company. Verizon and Klausner Technologies have quickly settled outstanding patent litigation by way of Verizon entering into a patent license agreement for using visual voicemail. To date, Verizon is the 15th company to ink such an agreement, ensuring that the suits at Klausner can remain firmly parked in Grand Cayman, Aruba, Maui or any other blissful location they please for the remainder of their Earthly lives. As for LG? We'd say the outcome is all but imminent at this point.
Just a day after hearing that T-Mobile lost its magenta suit against Telia, more bad news on the legal front has been handed down to the carrier. Just this week, the Supreme Court decided to reject T-Mob's appeal in a trifecta of cases "involving the legal remedies available in millions of cellphone contracts." Each case centered around the same issue: "whether state laws that limit the ability of companies to prohibit consumers from banding together to pursue class action lawsuits are preempted by federal law." In layman's terms, T-Mobile had attempted to ban class actions and require its customers to resolve any gripes via arbitration, which clearly didn't pan out so well. Hit the read link to read the rest, Mr. 1L.
No, this isn't some horrific dream stuck on repeat. The legal quarrels between Nokia and Qualcomm are actually still ongoing, and while a US International Trade Commission judge has indeed issued an initial determination that favors Nokia, you can bet your bottom dollar that Qualcomm will be "petitioning the commission for a review." Nevertheless, judge Paul Luckern reportedly "found no infringement or violation by Nokia of the three asserted Qualcomm patents," which consequently led Nokia's CFO to proclaim that this was simply "another failed attempt by Qualcomm to mislead both Nokia and the telecommunications industry." Of course, we wouldn't recommend striking this battle off as complete -- after all, the determination now has to be forwarded on to the full commission for review, and it's not slated to dole out a final call until April.
Regrettably, Verizon Wireless isn't the only carrier out there that once (or still does) recognized a mighty skewed definition of "unlimited" when it came to data plans, but for those still jaded from being cut off for "excessive use" earlier this year, justice has finally been served. The company has recently agreed to "reimburse the terminated subscribers for the cost of the laptop cards or laptop-connected cellphones" they purchased in order to surf the mobile broadband highway, and moreover, it'll be shelling out $150,000 in "penalties and costs" to New York state. Of course, the firm now makes clear that BroadbandAccess customers can be snubbed if they continuously stream audio / video content, enable P2P sharing or exceed 5GB of data usage per month, but it sounds like reimbursement is on the way for those disconnected when terms were more ambiguous.
If you had an inkling that Qualcomm's legal altercations were finally concluding, you'd be badly mistaken. Reportedly, the chip maker is now feuding with 19 of its own attorneys (or should we say, prior attorneys) over "who should shoulder the blame for what a judge called 'gross misconduct on a massive scale' at a past trial." Apparently, 21 crucial e-mails and some 200,000 pages of documents owned by Qualcomm were withheld until after Broadcom trials, which was unsurprisingly seen as a "carefully orchestrated plan and deadly determination to hold hostage the entire industry." Now, US Magistrate Judge Barbara Major is "considering sanctions" against the lawyers in question, which has placed their careers in danger and is "prolonging a damaging episode for Qualcomm." We're tempted to ask what could possibly happen next, but quite frankly, we're terrified of the answer.
Rather than simply suing Apple, Steve Jobs or AT&T individually, Dongmei Li decided to throw all three under the bus. The suit, which was reportedly filed this week in the United States District Court for the Eastern District of New York, accused the trio of "price discrimination, underselling, discrimination in rebates, deceptive actions and other wrongdoings for their role in the September 5th price drop on the iPhone." As you'd expect, Li was one of the folks who waited hours on end to be one of the first iPhone owners, and apparently feels quite slighted by the slashing. Purportedly, the plaintiff is hoping to secure "compensatory damages in the amount of $1 million" in addition to other punitive damages, and if you're up for a good laugh, hit the read link to browse through quite a few (more) comical gripes.






