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Federal Court Shuts Down Pay As You Go Wireless

self assembled struc writes "BCGI has been found guilty of infringing on pay-as-you-go wireless patents owned by Freedom Wireless. This means that cellular providers who use BCGI pay-as-you-go billing systems must immediately stop selling new service. For the next 90 days, as they wind down their service, they will have to pay Freedom Wireless 2.5 cents per airtime minute used PER CUSTOMER. This heralds a farewell to Cingular's Go Phone and Sprint-Nextel's Boost services, both powered by BCGI."

27 of 422 comments (clear)

  1. America by Monkelectric · · Score: 5, Insightful
    Where you can patent something obvious, and then prevent someone else from doing that obvious thing.

    Lets hang our heads in shame.

    --

    Religion is a gateway psychosis. -- Dave Foley

    1. Re:America by Anonymous Coward · · Score: 5, Insightful

      *shrug* yeah. I've long since realised the whole concept of freedom in the US is lip service to some ideal everyone would like, and everyone has convinced themselves they have, but has long since left on the wings of excess litigation, patents, government regulations and stupid laws. It wasn't until I left here for three years that I saw the reality is not much difference in many places overseas, but at least they're not running around spouting the "we're free" rhetoric and believing it.

      The patent system is part of that whole demise, where so much is said about it being a good thing to protect innovation, but the reality is the opposite. Guess people are really good at convincing themselves what they say is true, and be damned working towards what's said. Walk the walk, etc.

    2. Re:America by cpu_fusion · · Score: 4, Insightful

      Yes, let's hang our heads in shame. For a moment.

      Then let's get active and do something about this. If thousands of geeks can't manage to communicate to the millions of Americans how REDICULOUS this crap is, how it enslaves them financially, the injustice of it all .. if we can't communicate that with the INTERNET available, well then we deserve what we have.

      Oh wait. I got to go play World of Warcraft. Nevermind.

    3. Re:America by Geoffreyerffoeg · · Score: 4, Insightful

      Sorry, but you forgot the word "method".

      America, where you can patent a method of doing something obvious, and then prevent someone else from picking that method out of the many ways to do that obvious thing.

      Three cheers for forced innovation.

      Now if only the patent office knew how to figure out what could be innovated upon - indeed, what patents would encourage innovation, by protecting the innovators and forcing other people to develop alternate methods with useful side results - and what is actually obvious and can't be done differently.

      But I'm inclined to think that there isn't just one way to run pay-as-you-go. For example, you could transfer the whole balance to the phone in some encrypted manner, or you could have the phone check every minute whether the balance expired. You could keep its own true account, or you can model it as a phone with infinite airtime and a forced calling card. And so forth. There's more than one way to skin a prepaid cat.

    4. Re:America by Saeed+al-Sahaf · · Score: 2, Insightful
      I guess no one's ever thought up that particular use for a database before...

      Apperently not before Freedom Wireless...

      --
      "Who are in control, they are not in control of anything - they don't even control themselves!" - Glen Beck
    5. Re:America by Jekler · · Score: 3, Insightful

      I strongly feel that patents should be tied to one's ability to implement the idea. Any jackass can sit around and think up ideas. I really don't like the "I thought of it first!" patent system in the U.S. If you're going to have a patent system, it should be based on who does it first not who sat on the toilet longer.

    6. Re:America by CagedBear · · Score: 2, Insightful

      If you're going to have a patent system, it should be based on who does it first not who sat on the toilet longer.

      There is one fundamental problem with this approach. Most inventors don't have enough money to implement/build/execute their idea. So they have to take the idea to a bank, venture capitalist, large company etc. Without protection, the idea would cease to be theirs at that point.

  2. There goes my phone by crossconnects · · Score: 2, Insightful

    Freedom wireless is crap!

    Why is pay as you go patentable?

    --
    no big sig
  3. Re:Wait one second... by bypedd · · Score: 5, Insightful

    Furthermore there's the issue of all those people who will be out of a phone, possible their only one. I'm sure they won't be getting a sweet deal switching over to the patent-holding company - Shooting the competition in the back of the head is a perfect way to clear the path to raised prices for consumers forced to switch.

    It's a shame that laws originally intended to protect individuals or the little guys get turned into legal feeding grounds that do nothing but hurt the consumer and the diversity of the marketplace.

  4. Business Model Patents Suck! by N8F8 · · Score: 4, Insightful

    business model patents really are the great evil of the patent world. See it strangling industry after industry.

    --
    "God fights on the side with the best artillery." - Napoleon, Marshal of France - speaking truth to power
  5. Might be a good thing... by PAPPP · · Score: 5, Insightful

    Although this is immediately disgusting, in the not-so-long-run this might end up being a good thing, this is putting a kink in Sprint/Verison and Cingular's (the big mean companies with nearly inexhaustible legal resources) business model, who will likely lash out against it. If all goes well for them, it will end up creating a substantial precedent against this kind of business-method patent, which would inadvertently improve the patent law situation in the U.S., if we're lucky it might even catalyze a wider reform.

    1. Re:Might be a good thing... by sstidman · · Score: 2, Insightful

      I don't think he was hailing the businesses. His statement is probably better interpreted as "the big, selfish companies are fighting each other and the winner will be the rest of us".

      His point was completely logical.

      --
      Send/track messages to 100K people: www.xPressAlert.com
  6. Re:Well.... by ericpi · · Score: 2, Insightful

    If you want to start your own pre-paid phone network, you shouldn't steal Freedom Wireless's way of doing it.

    The problem with that logic is that there are likely only a small number of straightforward ways to "properly deduct the right amount of money from the account based on the number of minutes". Seriously, how many different ways are there to implement

    customer.balance -= (minutes * rate);

    Two independent companies could easily implement this in a very similar (straightforward) way, without "stealing" Freedom Wireless's way of doing it.

  7. Seems like an excellent rallying cry for reform by LetterRip · · Score: 2, Insightful

    I think this could wake up the public to the need for patent reform in a way that other things would not.

    Everyone uses wireless, pay as you go is a fairly obvious idea to pretty much anyone. A sudden skyrocketing price for cell phone calls will piss people off quite a bit.

    LetterRip

  8. Re:Dollars to doughnuts... by wernercd · · Score: 4, Insightful


    And Democrats don't have greedy self serving hypocrits in their party? or do you honestly believe that Clinton wasn't a greedy, self-serving hypocrit?

    For every republican you can find that's corrupt I can find a democrat...

    which goes to show that blaming the party affiliation in a situation is as retarded as pulling the race card (Which the majority of the time is bullshit). There are retards on both sides of the fence and blaming based on party don't fix OR address the real problems - or keep the threads on topic.

    If all you can say is 'it must be a republicans fault' your just showing your own ignorance. But... that's just my two cents

  9. Re:Well.... by MikeFM · · Score: 3, Insightful

    You mean the phone counts how many minutes you use it and deducts those minutes from your account as you use them. Gee I never would have thought of doing that. Doh. If it's obvious it shouldn't be patentable. Simply taking a common practice and moving it to a new technology or industry should not qualify as something worthy of a patent.

    Intellectual protection laws are shortsighted and don't work. If you can't keep innovating fast enough to profit then you deserve to go broke. Throw everyone to the sharks and let those who are smart enough and fast enough to stay ahead do so and the rest can get ate up and pooped out.

    --
    At what price learning? At what cost wisdom? The price is a man's peace of mind, and the cost is his life.
  10. More freedom in Communist Vietnam! by Tracy+Reed · · Score: 3, Insightful

    I have been spending a lot of time in Vietnam recently (6 months of the last year) and while I am there I always use my prepaid mobile phone. It is very sad to see that many companies over there can do it but there is a patent on such a simple idea here in the US.

  11. Easy patent reform: by laughingcoyote · · Score: 2, Insightful

    PRODUCE the thing you patented, or lose the patent. Period. And if you are producing it, be treated (and regulated) as a monopoly in that area, since patents by definition grant monopolies. Patents only on real, tangible, physical items-no business methods, no software, no genetics.

    There is NO excuse for the way the patent system is currently. Just because you're the first to do something doesn't mean it's non-obvious. Incremental changes or "improvements" should not be patentable-the inventor of cell phone technology should get a patent, the guy that figures out a better way to use it should not. Nor, generally, should the guy that figures out how to extend range by 10%.

    Hopefully, larger companies continually getting hit by these things will lead them to recognize that pretty soon you're not going to be able to move, breathe, or fart without infringing on something patented. I certainly hope that leads them to reconsider the path they're going down, and use their influence to do something worthwhile for once.

    --
    To fight the war on terror, stop being afraid.
  12. Re:For the sake of free market.. by Anonymous Coward · · Score: 1, Insightful

    Without Federal Court you'd still be paying AT&T.... remember that monopoly?

  13. Re:Wait one second... by sumdumass · · Score: 2, Insightful

    From the article, it apears that the existing service will generate a fee of about 2.5 cents a minute. At that rate, they could just license the product and sell the airtime as $0.15 a minute instead of $0.12. That may not eb the current charges but it isn't much different.

    It isn't like the users of the pay as you go type phones can go anywere else. $0.025 isn't going to break someone anymore then they are already. The only difference might be a few wiser decisions on who and when to call. Outside the "quit selling it" order, there really isn't anythign wierd here. Maybe after negotiations on using the patten are finalized, it might be 3 or 5 cents but who cares. these type of plans already prey on the poor and iresponcible. A friend recently got a nextell go ohne and after bragging about how cheap it was, i realized he basicaly is paying about 2/3 what i am (for regular service)for around1/3 the minute i get and my incoming and long distance is free compared to his costing. In reality it won't be much difference to take another nickle or so form them.

  14. The motive seems obvious... by Gloggy · · Score: 3, Insightful

    The US has for a long time been trying to export their patent laws overseas. In many african and asian countries it is a mandatory requirement for aid, trade, etc. By systematically patenting every obvious idea under the sun the US can continue it's "Perpetual Economic Expansion" by bringing patent serfdom to the rest of the world.

    Once the US has a hold on the patent system and has established laws worldwide to protect the interests of US patent holders, it will be possible to sit back, let the developing countries do the work, and reap the profits. It's a brilliant strategy.

    People living in developing countries (including me) must do everything in their power to lobby their governments to reject US patent laws. They could well be a noose around our neck and keep us in serfdom forever.

    Hey, at least nothing is changing...

  15. Fairness is a matter of perspective. by Saeed+al-Sahaf · · Score: 1, Insightful

    Would you feel the same if one night you had this dream in which you solved some fundamental problems that would allow ICs to be ten times faster (or something like that), and 3 or 4 years down the road some asshole at Intel say "eureka" and comes up with the same thing? Wouldn't it have been nice for you if you had written it all down and filed a patent on it? It's always a bitch when someone else comes up with something and decides to press the issue and clean up, but sometimes "fairness" is a matter of perspective.

    --
    "Who are in control, they are not in control of anything - they don't even control themselves!" - Glen Beck
    1. Re:Fairness is a matter of perspective. by Braino420 · · Score: 3, Insightful

      That's not what the parent is talking about. He's talking about whoever implements the idea first. These patents people are getting arne't "solving any fundamental problems", it's people patenting broad ideas that have many implementations AND NOT EVEN DOING ANYTHING WITH THEM. We're not talking innovation here...

      --
      They call me the wookie man, I guess that's what I am
    2. Re:Fairness is a matter of perspective. by Fulcrum+of+Evil · · Score: 1, Insightful

      ems that would allow ICs to be ten times faster (or something like that), and 3 or 4 years down the road some asshole at Intel say "eureka" and comes up with the same thing? Wouldn't it have been nice for you if you had written it all down and filed a patent on it?

      The essence of the patent is to allow prepaid accounts instead of monthly metered accounts. That's not really innovative. In fact, it's downright obvious. Speeding up an IC by 10 times is almost certainly non-obvious, unlike applying the prepaid model to cell phones.

      --
      "We returned the General to El Salvador, or maybe Guatemala, it's difficult to tell from 10,000 feet"
    3. Re:Fairness is a matter of perspective. by digitalunity · · Score: 2, Insightful

      Well, your example is a red herring. I'm a strong believer in that if such a thing were to happen, you would have really gotten a patent. I have to think that in such a situation, it would be apparent that your new and improved method of making an IC 10 times faster is not obvious or someone would have come up with it already. That's not really the case with computer software. With the rapid advancement in software capability and the fact that most of the software patents out there are apparently not non-obvious ideas, it strikes me as odd that the USPTO would issue so many patents.

      It almost seems as though the patent examiners don't actually do anything but stamp it. My god, this is terrible. At least when Amazon got their one-click shopping patent they had a functioning website to back it up. These guys didn't even have that. They decided that it must be a new and novel thing to use a database to correlate phone numbers with used minutes. Freakin duh! Isn't that what databases were designed for?

      This company doesn't just deserve to have their patent cancelled, they deserve a good inquisition for anti-competitive behavior.

      --
      You can't legislate goodness. Let each to his own destiny, by will of his freely made choices.
  16. I do, I hate cell phones by georgeha · · Score: 2, Insightful

    as 90% of the time I use one it's for work, and it means a headache (no one ever calls to tell me I'm doing a great job, they only call with problems), but for emergencies, last minute groceries and running late the wife and I both have a Tracfone. It's running about $20 USD/month for both of us.

  17. call for patents by Anonymous Coward · · Score: 1, Insightful

    This should be a wakeup call. The OSS MUST start patenting each and everything they can think of. The ONLY way we can keep OSS free and open is if we use the system to our advantage, like RedHat. Come up with ideas, patent them, or shop them to RedHat or even IBM and get them to patent them, giving you credit and having the patent open for all OSS. Basically, we have NO CHOICE.