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Magicjack Loses Legal Attack Against Boing Boing

An anonymous reader sends word that USB VOIP company Magicjack lost a lawsuit against Boing Boing when the judge declared the legal action a SLAPP (strategic lawsuit against public participation). Magicjack must pay more than $50,000 in legal costs. Boing Boing has posted a page linking and summarizing all the legal documents relating to the lawsuit.

25 of 148 comments (clear)

  1. Well, MagicJack succeeded in by ScrewMaster · · Score: 5, Interesting

    convincing me to not buy their product. Too bad, I was considering getting hold of one to play around with it. But I try not to support companies run by litigious pricks with no sense of humor.

    --
    The higher the technology, the sharper that two-edged sword.
    1. Re:Well, MagicJack succeeded in by JoshuaZ · · Score: 5, Insightful
      According to the linked article:

      After the dismissal of the lawsuit, MagicJack CEO Dan Borislow apologized and told us that his lawyers, Arnold & Porter, did not fully disclose to him the weaknesses in his case or properly analyze California law. During negotiations, we were surprised when MagicJack agreed to a settlement of our legal costs, then backed out. We would not agree to keep the actual legal dispute confidential under any circumstances. However, we offered not to publish details of our legal costs or their settlement if Borislow would donate $25,000 to charity. MagicJack, however, offered to pay our legal bill only if we'd agree to keep the whole dispute confidential; when we refused, Borislow wrote that he would 'see us in court.' Nonetheless, we're happy with the outcome. The irony for MagicJack is that the proceedings are public record, so the silence it sought was effectively worthless.

      To some extent it looks like they weren't litigious pricks as much as having gotten very bad legal advice and then not backed out when they should have. So this may be more in the category of "too stubborn" more than anything else.

    2. Re:Well, MagicJack succeeded in by Vellmont · · Score: 5, Insightful


      To some extent it looks like they weren't litigious pricks as much as having gotten very bad legal advice and then not backed out when they should have.

      So the lawyer thought they could win and was wrong. That somehow excuses them from being pricks by suing in the first place? You make it sound like the lawyer somehow forced Magic Jack to sue.

        So this may be more in the category of "too stubborn" more than anything else.

      I'd say stubborn pricks describes it quite well. Who sues someone for a factually accurate article that describes something the company publicly posted on their site, but hoped nobody would notice? I hadn't heard about the lawsuit or the spying behaviour of magic jack before. (Though I had heard of magic jack). You better believe I'll tell people that they reserve the right to spy on people based on who they call, then decide to sue people who tell anybody.

      --
      AccountKiller
    3. Re:Well, MagicJack succeeded in by Anonymous Coward · · Score: 5, Informative

      convincing me to not buy their product. Too bad, I was considering getting hold of one to play around with it. But I try not to support companies run by litigious pricks with no sense of humor.

      I ordered two of them but when I tried to activate the service it dropped the web link midway through. I wound up stuck in a limbo of not being able to activate them. I tried to contact tech support but all they offered is that bloody chat support. Every time I do that I end up typing for a half hour to an hour to solve a five minute problem. They said that was the only option so I canceled the service and warned others. Crappy service cost them a customer. Add $20 to the price and high actual support people! Nice idea bad execution.

    4. Re:Well, MagicJack succeeded in by Anonymous Coward · · Score: 3, Informative

      No Ubuntu client. Jerking us around ad infinitum. Convinced me not to touch them a loonnnnng time ago.

    5. Re:Well, MagicJack succeeded in by moosesocks · · Score: 5, Insightful

      So the lawyer thought they could win and was wrong. That somehow excuses them from being pricks by suing in the first place? You make it sound like the lawyer somehow forced Magic Jack to sue.

      Yes. A good lawyer should have told them they had no chance of winning the lawsuit. Prosecuting a libel case in the US is extremely difficult even when the plaintiff has a legitimate case to make.

      --
      -- If you try to fail and succeed, which have you done? - Uli's moose
    6. Re:Well, MagicJack succeeded in by MichaelSmith · · Score: 5, Insightful

      So the lawyer thought they could win and was wrong. That somehow excuses them from being pricks by suing in the first place? You make it sound like the lawyer somehow forced Magic Jack to sue.

      Yes. A good lawyer should have told them they had no chance of winning the lawsuit. Prosecuting a libel case in the US is extremely difficult even when the plaintiff has a legitimate case to make.

      But that lawyer would have walked away with less money.

    7. Re:Well, MagicJack succeeded in by plover · · Score: 3, Funny

      MagicJack are indeed stubborn pricks.

      But take it no further: "Litigious bastards" is still a phrase best reserved for SCO.

      --
      John
    8. Re:Well, MagicJack succeeded in by Anonymous Coward · · Score: 5, Insightful

      DO NOT EVER TAKE RESPONSIBILITY AWAY FROM THE MOVANT and PUT IT ON THEIR LAWYERS.

      If you hire dicks to sue people, it means you hired dicks to sue people.

      It makes me angry because I've been on the receiving end of such dickishness.

       

    9. Re:Well, MagicJack succeeded in by DragonWriter · · Score: 5, Insightful

      To some extent it looks like they weren't litigious pricks as much as having gotten very bad legal advice and then not backed out when they should have.

      Or, their litigious pricks who refuse to take responsibility for their own actions, and our now blaming their lawyers.

    10. Re:Well, MagicJack succeeded in by nudicle · · Score: 3, Informative
      The problem with this whole line of thinking is that we don't know what Dan Borislow's lawyers said to him. We only know what Dan Borislow says about his lawyers.

      Trust me, every day good lawyers say to their clients the equivalent of "if things blow up, just blame it your lawyer". They often do this when their clients say "I don't care about the probability of getting what I want, I want to got for it. How can I do damage control?"

    11. Re:Well, MagicJack succeeded in by douglips · · Score: 3, Funny

      Waste of time, really. All you have to do to get a BoingBoing post taken down is to somehow link the story to the words "Violet Blue."

  2. Soooo.... by Dexter+Herbivore · · Score: 5, Funny

    MagicJack SLAPPed a Boing Boing? Sounds dirty to me.

  3. A little background please? by dido · · Score: 5, Informative

    The summary could have put in a word about how MagicJack sued for defamation after Boing Boing made a post highly critical of their EULA, before explaining how the judge shot their suit down as a SLAPP...

    --
    Qu'on me donne six lignes écrites de la main du plus honnête homme, j'y trouverai de quoi le faire pendre.
    1. Re:A little background please? by hldn · · Score: 3, Funny

      this is their ploy to get us to read the articles.

      --
      http://www.accountkiller.com/removal-requested
    2. Re:A little background please? by value_added · · Score: 4, Funny

      Sued for defamation? That's not the half of it!

      In the lawsuit ... MagicJack alleged that these statements were false, misleading, and had irreparably harmed MagicJack's reputation by exposing it to "hate, ridicule and obloquy".

      Someone's got to say it ...

      Our three weapons are ... hate, ridicule and obloquoy!

  4. Great tech, shitty business by bguiz · · Score: 5, Interesting

    Even BoingBoing agrees that MagicJack's hardware is great stuff... Too bad their marketing/management/legal department seems to think it can get away with shady practices like their crappy EULA.

  5. FUD about Blogging by Anonymous Coward · · Score: 4, Funny

    From the article;

    In the lawsuit... It also alleged that I am a professional blogger.

    I knew that bloggers were disreputable sources for Wikipedia, but I had no idea that being a blogger could be used against you in a court of law.

  6. I lo;ve MagicJack by Anonymous Coward · · Score: 3, Funny

    I continue to be amused by the power switch on the MagicJack: MagicJack On. MagicJack Off.

  7. Re:"Magicjack Loses Legal Attack Against Boing Boi by Anonymous Coward · · Score: 3, Insightful

    Facebook is not social interaction, no matter how many times you say it is.

  8. Re:Why the black ops stuff? by Anonymous Coward · · Score: 3, Informative

    But their business model is unsustainable. There are real, FCC-mandated costs to terminating calls on the PSTN. Those costs are more than $20/year if you terminate even a few hours of calls in rural areas, and can easily exceed $20/year even if you only ever call metro numbers.

    The only way MagicJack can make a go of it is by becoming a CLEC, preferably in areas with high termination fees, then collecting those termination fees on inbound calls and hoping that they get enough inbound traffic to pay termination fees on all their outbound calls. Presumably most of their outbound calls are to low-rate metro areas, which makes things easier, but it's still playing an arbitrage game. They also stack they deck by explicitly block some high-termination-rate areas -- mostly those used by other companies with the same business model -- meaning you simply can't connect with some people or services in high-tarrif regions.

    The long and the short of it is real phone companies won't put up with this for long if they see it as a real threat. They'll either start doing it themselves and the mandatory termination fees will be restructured, or they'll find some way to make it illegal/convince their lawmakers and regulators that it already is illegal.

  9. Parallel with Google AdSense by bguiz · · Score: 3, Interesting

    It just struck me that the main bone BoingBoing had to pick with MagicJack's EULA is that its users' calls are monitored, and are played targeted ads (obtained from said monitoring). How is this really much different from Google's adsense inside of gmail, where ads containing keywords found in your email's body are displayed next to your emails?

    Not that I am supporting MagicJack or Google in anyway, but what really was the difference? Did it boil down to Google's better wording or selling of its adsense, or are we just more sensitive when it is done to audio/ voice as opposed to when it is done in text/ email?

  10. This company is horrible by gargeug · · Score: 5, Informative

    So my boss bought these for our office, and as the tech guy I had to actually deal with them. The device itself is actually quite good, but their company is an abomination of a decent business. One of the jacks stopped working, and so I figured that it should be replaced with the option of transferring our old number to the new jack. Their customer service jerked me around for hours until one of them finally sent me a link to their terms and hung up on me. Basically, once they have your money they will jump through hoops to not help you at all. It is such a sleazy company and I hope nobody here gets fooled by them and actually buys it. Pay more for your service just to deal with a reputable company.

  11. OF COURSE they're litigious pricks by Anonymous Coward · · Score: 4, Funny

    To some extent it looks like they weren't litigious pricks as much as having gotten very bad legal advice

    How did they find themselves in a situation where they were receiving legal advice, unless they were already committed to assholery? When you're just sitting there minding your own business, lawyers don't just call you up out of the blue and spout advice at you before you can hang up.

    Someone made a statement about MagicJack that MagicJack knew was true. MagicJack decided, "fuck the truth, I wonder if there's a way we can use force to shut them up." Ok, at that point a foolish lawyer might say, "Yes, I think I know a way that you can be a total motherfucking litigious asshole and successfully use force against this totally innocent party in order to suppress the truth," and a gullible MagicJack might believe that the lawyer was telling the truth.

    But anyone who isn't evil, upon hearing that advice from their lawyer (let's ignore the fact that they had already proved themselves evil by even bothering to seek that advice), would say to their lawyer, "Well, that's interesting, Mr. Lawyer. I hope you enjoyed this intellectual exercise, but of course since I'm not a total mother-stabbing new-age-witchcraft-practicing father-raping puppy-shredding nun-strangling terrorist hippie racist moronic flat-earther sexist heretic robber-baron asshole Republican innocent-attacking bastard litigious prostitute kitten-poisoning jerk gay Scientologist thieving SCO homophobic Democrat shit-eating Nazi stupid criminal cocksucking evil Communist odious pig-fucking Christian pedophile nu-metal-wigger Romulan poo-head, I couldn't possibly actually proceed with such a case against a totally innocent party, even though I could successfully work my evil to advance the general cause of harming society and making the world a worse place. As much as I'd really like to, because I really do like injustice."

    We know they're motherfuckers, and bad legal advice is totally beside the point. Accepting bad legal advice only means they're gullible motherfuckers.

  12. Ran their EULA through EULAlyzer... by WidgetGuy · · Score: 5, Informative

    ...and it concluded: "The license agreement above has a high calculated interest ID. It's extremely long, and there were a high number of detected 'interesting' words or phrases." That means Eulalyzer thinks its a bad EULA. The interesting words or phrases are listed and can be viewed in context: (1) Advertising, (2) Emergency Calls or Services, (3) Third Party, (4) Web Site Address, and (5) Without Notice. I've never seen a EULA with that many "'interesting' words or phrases" called out by the program.

    EULAlyzer is a free (download: http://www.javacoolsoftware.com/downloads.html). If, like me, you don't have the time to read through the EULA's for software you're thinking of purchasing, this is just the program for you. At the very least, it will give you a "heads up" and point you to the 'interesting' parts of the EULA where you can, then, read as much "legalese" as you can stomach..

    --
    One "Aw, Shit!" is worth 100 "Ata boys!"