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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."

34 of 422 comments (clear)

  1. I'm using Cingular's Go Phone by Anonymous Coward · · Score: 5, Funny

    For wireless dial-up access, and I haven't noticed any

  2. 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 thegrassyknowl · · Score: 5, Funny

      Where you can patent something obvious, and then prevent someone else from doing that obvious thing.

      You are infringing on my patent:

      My idea is the generic method of using a muscular diaphragm to apply force to a bag made of human tissue in order to draw air into and expel air from the bag for the purpose of respiration!

      Please pay me $0.025 for every breath you take.

      --
      I drink to make other people interesting!
    5. Re:America by afabbro · · Score: 4, Funny

      It was diculous the first time. No need to re-diculize it.

      --
      Advice: on VPS providers
    6. Re:America by mattkinabrewmindspri · · Score: 4, Interesting
      Apparently they patented the idea of using a database to keep track of your wireless usage:
      Freedom Wireless, a four-person company, has never set up an actual business serving customers; it seeks royalties from companies like BCGI, Verizon Wireless, and Nextel Communications Inc. At the heart of Freedom's 1996 patent is the idea of using a computer to match a cellphone number with a database showing how many paid-up minutes the cellphone owner has, then deciding whether to complete a call.

      I guess no one's ever thought up that particular use for a database before...

    7. Re:America by TWooster · · Score: 5, Funny

      What about every move I make?

      Every bond I break?

      Every step I take?

      Wait... Are you stalking me?

  3. Well... by Ceirren · · Score: 5, Funny

    Looks like they'll be paying as they go! Hahahahaha

  4. So... by lenmaster · · Score: 5, Funny

    I guess the name "Freedom Wireless" is an ironic choice.

    1. Re:So... by wo1verin3 · · Score: 5, Funny

      Well it rolls off the tongue better then what they were originally going to name the company "Full of Nazi Patent Whores Wireless".

    2. Re:So... by gad_zuki! · · Score: 4, Funny

      > I guess the name "Freedom Wireless" is an ironic choice.

      Only in pre 9/11 America.

      *rimshot*

      Not as catchy as "In Soviet Russia" but it has potential. In post 9/11 America, freedom wireless takes your phone!

  5. Wait one second... by NETHED · · Score: 4, Funny

    I read the article. Is this for EVERYONE in the country? What will happen for all the users of these phones. What about tracfone, they've been at it for YEARS, does this affect them? I need clarification or some unfounded speculation, both would be nice.

    --
    --sig fault--
    1. 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.

  6. One Word.... by Anonymous Coward · · Score: 4, Funny

    BULLSHIT!!!

    You'll NEVER stop me from getting FREE WIFI off of my Pringles Can!!!
    Take THAT FCC!!!

  7. After hearing the verdict by Koil · · Score: 4, Funny

    He then turned and walked defiantly from the court room, only to sheepishly return and ask "Um....anyone have a cell phone?? I need to call my lawyer."

  8. For the sake of free market.. by cybrthng · · Score: 4, Funny

    I hope we can rely on federal court to rid us of these patented monopolies.

  9. A bit more extensive writeup: by andreMA · · Score: 4, Informative

    here
    Doesn't include the information I was looking for, but does give a bit more detail.

  10. 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
    1. Re:Business Model Patents Suck! by bani · · Score: 4, Funny

      and this is a bad thing? i see it as a perfect way to destroy the RIAA and MPAA.

  11. Background on Litigants, from Wall Street Journal by Landaras · · Score: 5, Interesting

    I remember reading about this case a few weeks ago in the Wall Street Journal. The article was entitled "Patent litigants pose growing threat to business."

    The first paragraph brought to light one of Freedom Wireless' founder's criminal past (it involved stolen cars) as well as the fact that the founders had previously gone after GTE for similar issues (alleging stolen trade secret). GTE ended up getting paid $90,000 in legal fees, a statement that GTE had never stolen a trade secret, and a promise never to sue GTE again.

    Fast forward a few years. Freedom Wireless currently does nothing but patent ligitation. These men are patent trolls.

    The Wall Street Journal charges for their archives, but the full text of the same article is available here.

    - Neil Wehneman

  12. Re:Lets yell by Lemmy+Caution · · Score: 4, Interesting

    See, one of the problems of the political culture in this country is this: the people who are suspicious of corporate power are too trusting of government power to allocate resources for social change; the people who are suspicious of government power have a hard-on for the public sector (without realizing that wealth will always - always - muster power to protect itself) and, often, for the military. (The biggest weak-point in libertarian thinking is class-blindness - they think they are serving hard-working middle- and-upper-middle-class americans without understanding that this is exactly the class the created the Leviathan of state to begin with, and in whose interests it ultimately works.) This means that the political will to muster things like a reform of patent law will never occur unless it happens in a way that is in the interests of power.

    Which may be happening here: the Cingulars and Nextels may start getting annoyed enough by the absurdities of patent law and the effect on their bottom line that they start to lobby for a change. Unfortunately, the change is not likely to make things any easier for the bulk of us.

  13. I use Virgin Mobile... by NeuroManson · · Score: 5, Funny

    Does this mean I'm screwed as well?

    --
    Just because you can mod me down, doesn't mean you're right. Shoes for industry!
    1. Re:I use Virgin Mobile... by sdo1 · · Score: 5, Funny

      No, don't worry. By definition, you're not getting screwed.

      --
      --- What parts of "shall make no law", "shall not be infringed", and "shall not be violated" don't you understand?
    2. Re:I use Virgin Mobile... by dwater · · Score: 4, Funny

      > How can you get screwed by a Virgin?

      There's always a first time.

      Actually, there's *only* a first time.

      Er, ah, right this is /.; I forgot.

      No, there's never a first time

      --
      Max.
  14. Whew! Safe! by Macgruder · · Score: 5, Informative

    From the summary: "This heralds a farewell to Cingular's Go Phone and Sprint-Nextel's Boost services, both powered by BCGI."

    In regards to Cingular, not exactly.

    Cingular has two forms of prepaid service (GoPhone).

    One is 'Pick-Your-Plan'. You have a reoccuring monthly charge on your credit or debit card which gives you a monthly allowence for service.

    The other is 'Pay-As-You-Go'. You buy a prepaid card off the rack, and use that to make your calls on your cell. As you use it up, you replace the card. That's the part that will be affected by this ruling.

    --
    I'm not crazy,I'm actively irresponsible.
  15. It's as crazy as it sounds by Mostly+a+lurker · · Score: 4, Informative

    The patents is question are 5,722,067 filed in 1998 and 6,157,823 filed in 2000.

  16. 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.

  17. 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

  18. Doesn't affect everyone by Anonymous Coward · · Score: 5, Informative
    From another Reuters story on this topic:

    Cingular Wireless spokesman Mark Siegel said the injunction does not apply to the "vast majority" of Cingular's prepaid wireless customers, who use a different type of network technology.

  19. Re:Painful Math by Anonymous Coward · · Score: 4, Funny

    Yes, your math is painful.

    10 * $0.025 * 3,100,000 = $775,000

  20. something obvious by John+Sokol · · Score: 5, Interesting

    I haven't seen the patent first hand, but often something obvious now, wasn't at that time. If it were then why wasn't someone else doing it already.

        I can list many examples of this. The mouse, keyboard, screens, printers, windowing environment, The Internet, an Operating system and even a CPU and the IC chips, were at the time major conceptual steps forward.

      I can't tell you how hard it was to explain what the Internet or even a Network was to people in 1983, they just couldn't grasp it.

      With patents if someone has been doing something then a patent gets filed by another person at later date, then the group getting sued must try to show that, if they can the patent holder will have to pay like multiple damages and costs.

      So as a patent holder you never want to go to court with a weak patent.

      But in practice, most people loose their nerve at the first letter from a patent holder, even if its a weak patent that wouldn't hold up.

      As a result many people end up paying royalties or giving up without a fight, when they really would win and have that patent tossed out.

      I have come to realize much of patent law is a poker game.

      For a large company like Microsoft they look at the strength of a patent and the value of the company holding it and decide is it cheaper to pay or infringe. And same in reverse, even if a patent isn't worth the paper it's written on, if the company they sue can't afford to challenge it, then they win.

        AT&T did this to many companies they felt were competition, file dozens of bogus suite against one company, from many little companies they control, and drive the small players out of business while leaving there name out of it.

    --
    I am always doing that which I can not do, in order that I may learn how to do it. - Pablo Picasso
  21. You guys have this all mixed up, only TDMA service by tomcio · · Score: 4, Informative

    is affected, which means the old ATT TDMA people "free2go" plan.

    The GMS Pay as you go, and pick your plan are not affected.