Trackfone Wins Legal Case Against Phone Unlockers

USA based TracFone Wireless has won a court case against a group of people which has forbidden them from buying network locked handsets and then reselling them unlocked for use on other networks.

The judgment, handed down on March 5 by U.S. Judge David C. Godbey of the Northern District of Texas, prohibits defendant James Ray Thomas, Jr. (a/k/a Jim Thomas Hollis a/k/a James L. Ford) and his co-conspirators from continuing to engage in the bulk purchase, sale, or unlocking/reflashing of TracFone's wireless phones.

Their scheme makes extensive use of "runners," who circumvent the limitations at retail stores that prohibit sales of more than 2 phones per customer by making purchases at multiple stores, using different cashiers within each store, and sometimes changing their clothing or appearance to deceive store clerks into selling them multiple phones.

TracFone says that it has filed 28 lawsuits against more than 80 defendants in federal courts throughout the country as part of a concerted effort to stamp out unlocking. The judgment against Thomas is the 12th victory for TracFone in these cases. The other cases remain pending.

Carlton Fields Shareholders James B. Baldinger commented: "We intend to file many more lawsuits around the country, and to continue working closely with law enforcement, private investigators, and handset manufacturers to attack the perpetrators from all sides. Anyone engaged in this practice should be concerned that they may be our next target."

A member of Carlton Fields' Litigation and Dispute Resolution, Class Action Litigation, Telecommunications Law, and Intellectual Property Practice Groups, Baldinger practices complex commercial litigation and provides advice and counsel to companies on security, electronic surveillance, and telecommunications law matters. He formerly served as Vice President of Business Security and Senior Corporate Counsel for AT&T Wireless Services.

Posted to the site on 10th March 2008