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TracFone to challenge cell phone unlocking rule
RCR Wireless News ^ | 11/30/06 | Jeffrey Silva

Posted on 12/01/2006 12:11:50 PM PST by conservative in nyc

TracFone Wireless Inc., the nation’s largest pre-paid wireless company, said it is considering filing suit in federal court to repeal a new Library of Congress rule exempting mobile phone locking software from U.S. copyright law.

The ruling essentially allows an individual to unlock his or her cell phone from the wireless service that it was sold with, thereby allowing the phone to work on other carriers’ networks. Previously, unlocking a phone violated U.S. copyright law.

“Although TracFone believes that the exemption to the Digital Millennium Copyright Act … was not intended to apply to prepaid wireless service, we are nevertheless concerned that its ambiguous language may be exploited in a way that will be extremely harmful for consumers and the public at large,” said James Baldinger, outside counsel to Miami-based TracFone.

The suit could be filed early next week in Florida federal court.

The Library of Congress on Monday issued a final rule on the handset locking software exemption, accepting the Nov. 17 recommendation from the U.S. Copyright Office. Register of Copyrights Marybeth Peters refused to consider late-filed comments from TracFone and cellular association CTIA in her recommendation.

TracFone has used copyright law in court to halt small firms from buying and unlocking large quantities of TracFone handsets.

“This new regulation may force TracFone and other providers to substantially increase their retail prices for wireless phones, making it more difficult for many of the most vulnerable members of society to obtain this often life-saving service,” said Baldinger. “In addition, criminals who purchase large quantities of wireless phones to be hacked and sold overseas may use this regulation as a shield to attempt to protect themselves from civil and criminal liability for their illicit activity. TracFone has aggressively pursued legal action and worked with law enforcement to combat that activity, and will continue to vigorously pursue those efforts regardless of the outcome of its court challenge to the exemption.”

CTIA said the Library of Congress rule does not prevent operators from continuing to lock handsets, but merely removes copyright liability for unlocking them.

The largest U.S.-based mobile phone manufacturer offered a somewhat ambiguous reaction to the Library of Congress decision.

“Motorola is reviewing the implications of the recent ruling by the U.S. Copyright Office. We are working to ensure that any actions we take support consumer needs while complying with any contractual obligations,” said a Motorola Inc. spokeswoman.

A spokesman for Nokia Inc., the world’s largest mobile phone supplier, said he did not expect the ruling to have a significant impact in the near term.


TOPICS: Business/Economy; News/Current Events
KEYWORDS: cellphone; cellphones; dmca; tracfone; unlock
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To: conservative in nyc

My wife has a regular contract cell phone and I have a Tracfone. When her contract runs out I am getting her a Tracfone. As long as the service is kept active the minutes (units) roll over. Right now I have about 270 minutes and not due for another card until early March. I figure it is costing me about $10 a month. I've already bought her one and just waiting for her contract to expire and then she gets one too.

I don't get this business of unlocking a Tracfone. I really don't. Maybe overseas but not in the U.S. Doesn't make any sense.


41 posted on 12/01/2006 2:16:55 PM PST by RichardW
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To: oceanview

Using that logic, every American should be jailed because they have the potential to commit crime.


42 posted on 12/01/2006 2:17:17 PM PST by Fierce Allegiance ( <h2>SAY NO TO RUDY! I know how to spell, I just type like s#it.)
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To: oceanview

You don't get it. There has never been a single event of terrorism in theUSA using a prepaid cellphone. Not one. You want to strip freedoms, though, based on a false premise.

That, my friend, is a VERY scary proposition. Where does it end?


43 posted on 12/01/2006 2:20:18 PM PST by Fierce Allegiance ( <h2>SAY NO TO RUDY! I know how to spell, I just type like s#it.)
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To: RichardW

Neither do I, but I wasn't going to admit it.


44 posted on 12/01/2006 2:21:11 PM PST by Fierce Allegiance ( <h2>SAY NO TO RUDY! I know how to spell, I just type like s#it.)
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To: RichardW
I don't get this business of unlocking a Tracfone. I really don't. Maybe overseas but not in the U.S. Doesn't make any sense.

Unlocked phones themselves are simply worth more than locked phones. Just look on E-bay. Tracfones can be resold in Mexico (where Tracfone's parent company offers pre and post-paid cell phone service) or overseas for more than what you'd pay for them at Wal*Mart or Target, and it might even be cheaper for U.S. cell phone kiosks to purchase them at Wal*Mart, remove the lock, and sell them as phones to be used for post-paid services.

If you ever do get dissatisfied with Tracfone, not having to buy a new phone to switch carriers would be a plus.
45 posted on 12/01/2006 2:23:50 PM PST by conservative in nyc
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To: Fierce Allegiance
How many case of terrorism has the US seen involving prepaid phones?

I'd be willing to bet the first time it will be thousands of cell phones in thousands of locations across the country in a less than 10 minute window.

46 posted on 12/01/2006 2:25:10 PM PST by null and void (To succeed in life, you need three things: a wishbone, a backbone and a funnybone. --Reba McEntire)
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To: angkor

If TracFone loses this, it will completely destroy their business model. It does seem that people should be able to unlock any phone that they own, but as you said, you can't sell 'em for $20 and have people unlock em and walk away. I'm not entirely sure that other major contract carriers would activate a TracFone on their network even if possible. For instance, the account activation s/w at the carrier kiosks checks the ESN of the phone and rejects it as not part of their network.


47 posted on 12/01/2006 2:27:03 PM PST by Sender ("Always tell the truth; then you don't have to remember anything." -Mark Twain)
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To: conservative in nyc

What's there to get dissatisfied with Tracfone? The phone was $20. I'm paying $20 every two months. I get good reception and can use it anywhere in the United States. I don't use it as a constant device to yak and use it when I need to contact someone for important business. And it is great when trying to locate a spouse in Wal-Mart or a mall. I just stick it in my shirt pocket whenever I leave the house. Then I'm always in contact with my family, which is what I bought it for. The cards are available everywhere and it is easy to add minutes and a lot of time they are running specials on double minutes, etc. I have yet to ever run out of minutes and they just keep adding up each time I add more minutes and keep the service active. The only thing to watch out for is not to let it expire which will cause the number and minutes to elapse. I don't do that. I have seen few better values on the market.

On a regular cell phone service this may make some sense but I can't see any advantage on a Tracfone. I don't travel outside the country, so why would I be interested in this story?


48 posted on 12/01/2006 2:33:04 PM PST by RichardW
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To: RichardW
What's there to get dissatisfied with Tracfone? The phone was $20. I'm paying $20 every two months.

Suppose a new company, NotTracfone, comes up with a plan to charge you $10 every two months for the same amount of minutes, instead of $20. If you aren't able to unlock your phone to use NotTracfone's service, you're stuck paying $20 every 2 months. If you are, you might be able to save.

On a regular cell phone service this may make some sense but I can't see any advantage on a Tracfone. I don't travel outside the country, so why would I be interested in this story?

Well, you clicked on it. The decision might blow Tracfone's business model out of the water, which would directly affect you when they sell you your next phone for $100 instead of $20.
49 posted on 12/01/2006 2:40:55 PM PST by conservative in nyc
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To: All
“This new regulation may force TracFone and other providers to substantially increase their retail prices for wireless phones

I wouldn't doubt that. TracFone's $20 phones would become a thing of the past. Then again, I have to wonder how much revenue TracFone ever sees from its average $20 phone purchase. We have two of them, and we're paying by the year (~$90). But, there's nothing preventing a person from paying $20 for the phone with its 10 minute card and throwing it away after 60 days of service.

50 posted on 12/01/2006 2:42:40 PM PST by newgeezer
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To: Fierce Allegiance
I do feel it's a violation of my privacy to have to produce an id to buy a consumer product in a store.
IHOP Changes Policy of Asking for IDs

QUINCY, Mass. - John Russo has been a victim of identity theft. So when he was asked to fork over a photo ID just to be seated at an IHOP pancake restaurant, he flipped. "'You want my license? I'm going for pancakes, I'm not buying the Hope diamond,' and they refused to seat us," Russo said, recounting his experience this week at the Quincy IHOP.

The restaurant now has agreed to reverse the policy of requiring customers to turn over their driver's licenses before they can order - a rule that was enacted to discourage "dine and dash" thefts.

WCVB-TV in Boston reported the Quincy restaurant's policy had been enacted without corporate approval.

IHOP Corp., based in Glendale, Calif., released a statement Monday night to WCVB that said an employee felt the policy could eliminate the problem of people leaving without paying.

"This was done without the knowledge or approval of management. ... We apologize to any guest who was inconvenienced," the statement said.

Russo said a security guard at the restaurant had "at least 40" licenses in hand when he arrived to eat.


51 posted on 12/01/2006 2:44:52 PM PST by FreedomCalls (It's the "Statue of Liberty," not the "Statue of Security.")
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To: oceanview

It's not the government's job to prevent "the next 911", it's our job as citizens. All of these measures like a National Id or a ban on this or that item that is supposed to make it easier for government agencies to detect terrorists or prevent attacks only make the public more complacent. Ids can be forged, items can be smuggled and pretending laws can make us safer is dangerous. The public has been doing a pretty good job of reporting suspicious behavior or purchases and should be frequently reminded to keep up the good work.


52 posted on 12/01/2006 2:57:33 PM PST by Dan Cooper
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To: Fierce Allegiance

there was never a single event of terrorism before 9-11, crashing hijacked airliners into buildings either.

what you are basically saying - is that we should throw all reasonable threat assessments and their countermeasures - out the window. let's cancel the NSA foreign wiretaps also. the new passports, sh*t can them. new airline security measures, cancel them. let's toss it all.


53 posted on 12/01/2006 3:46:39 PM PST by oceanview
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To: been_lurking

there is no right to privacy in the constitution - that concept is a liberal manifestation. if you agree with the left on this point, fine - but at least admit it.


54 posted on 12/01/2006 3:48:54 PM PST by oceanview
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To: FreedomCalls

40 suckers went for it. Geez.


55 posted on 12/01/2006 7:33:00 PM PST by Fierce Allegiance ( <h2>SAY NO TO RUDY! I know how to spell, I just type like s#it.)
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To: oceanview
we should throw all reasonable threat assessments and their countermeasures

Ah, you nailed it. you said reasonable threat assessment. Your scenario is not reasonable.

56 posted on 12/01/2006 7:36:24 PM PST by Fierce Allegiance ( <h2>SAY NO TO RUDY! I know how to spell, I just type like s#it.)
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To: Fierce Allegiance
40 suckers went for it. Geez.

LOL! That's what I was thinking when I read it. I wondered why they didn't just turn around and walk out when asked for it? I routinely turn around and walk out of fast-food places if go through the door and see that the line is long. The only reason to go to a fast-food place is that the food should be fast. You for sure don't go for ambiance or low prices because the places are not where you would want to linger and the food isn't cheap. 40!

57 posted on 12/01/2006 7:40:15 PM PST by FreedomCalls (It's the "Statue of Liberty," not the "Statue of Security.")
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Comment #58 Removed by Moderator

To: John Williams

what privacy?

you have constitutional protections, you have the protection of due process in law for everything in life, liberty, etc. But those are not some blanket rights to anonimity.

If duly elected representatives of the people decide you must produce identification to open a bank account, or obtain a post office box - that's not a violation of your constitutional rights. if you don't like those laws - fine - elect someone who will change them.


59 posted on 12/02/2006 1:16:33 PM PST by oceanview
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