Monday, December 19, 2005

BCGI Gets Reprieve From Court

Boston Communications Group Inc. (bcgi) is claiming a victory in its patent fight with Freedom Wireless. A federal court of appeals has stayed a previously imposed injunction prohibiting bcgi from offering its prepaid mobile phone billing services in the United States.

Bcgi's fight with Freedom Wireless has been ongoing. The company originally was hit with the $128 million patent infringement judgment in May after a jury ruled that bcgi "willfully" infringed on Freedom Wireless' patents. In September, a federal judge upheld the $128 million judgment against the company.

That ruling was followed in October by an imposed injunction that forbid bcgi and Cingular Wireless from selling prepaid wireless services that were connected with the Freedom Wireless patents, which bcgi was found to infringe upon.

The ruling did, however, allow bcgi and Cingular to continue to serve current customers for 90 days, but stated that the companies would have to pay Freedom a 2.5-cent-per-minute royalty for any use during that period. The stay of the injunction also nullifies this requirement to pay royalties to Freedom during the appeals process, according to bcgi.

"We are happy that the appeals court has stayed the injunction," bcgi President and CEO E.Y. Snowden said in a prepared statement. "With this decision in our favor, we are now on solid footing to continue to pursue our appeal."

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