Prepaid Patent Battle Ends
Jul 24, 2006, 9:31 AM by (staff)
Prepaid billing specialist Boston Communications Group Inc. (BCGI) has finally settled its long-running legal battle with patent-holding firm Freedom Wireless. BCGI will pay Freedom just over $55 million to settle the dispute, including nearly $13 million to license the patents for an additional seven months. Freedom also agreed to drop associated litigation against BCGI's customers, including Cingular, Sprint, and Alltel. Last year, courts ruled that BCGI was infringing on two Freedom patents covering basic ideas behind prepaid mobile phone service. BCGI was initially ordered by the courts to pay over $140 million, which threatened to bankrupt the company and leave its customers without a prepaid billing solution.
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