VeriSign Settles PrePaid Billing Patent Clains

Freedom Wireless says that it has settled a patent infringement suit against VeriSign on Freedom Wireless' claims that VeriSign infringed three of Freedom Wireless' patents relating to prepaid wireless systems and on VeriSign's counterclaims alleging non-infringement, invalidity and unenforceability of those patents.

Freedom Wireless' infringement claims were based on prepaid wireless services offered by VeriSign to two wireless carriers, Alltel Communication and United States Cellular. To settle the claims, VeriSign agreed to pay Freedom Wireless a confidential amount of money and to transfer to Freedom Wireless a portfolio of ten United States and twelve foreign patents and other intellectual property rights relating to prepaid wireless services. In return, Freedom Wireless granted a limited license of its patents to VeriSign, but only to enable VeriSign to fully perform certain existing prepaid wireless contracts, and granted a release to VeriSign's carrier customers that is limited to their use of certain VeriSign prepaid wireless services.

Larry Day, President of Freedom Wireless, said: "We are pleased to successfully settle our disputes with VeriSign and to add VeriSign to our ever-growing roster of licensees. The patents that we have received from VeriSign significantly expand the scope of our patent portfolio. As a development and technology company, we will continue to vigorously enforce our intellectual property rights to prevent wireless carriers and wireless service providers from using them without licenses."

The settlement with VeriSign does not settle Freedom Wireless' patent infringement claims against the other defendants in the case, Comverse and Cricket Communications or Freedom Wireless' claims against Alltel based on its use of Comverse's prepaid wireless services. Freedom Wireless says that it will continue to prosecute those claims.

Posted to the site on 21st May 2008