Freedom Wireless Wins Jury Trial in Cellular Patent Suit

Yahoo! News reports (AP):

A jury on Friday ordered a prepaid cellular phone service company and four wireless carriers to pay $128 million in damages to a firm that patented technology and systems to provide prepaid service.

After a 12-week trial and four days of deliberations, a U.S. District Court jury ruled in favor of Phoenix-based Freedom Wireless Inc.

More: Press release.

Update: For the investor-minded, Marketwatch has more:

Shares of Boston Communications plunged Monday after the provider of billing software for wireless phone companies announced that it had lost a patent infringement lawsuit.

Update (June 1, 2005): Freedom Wireless homepage.

More: RCR Wireless News reports (May 27, 2005):

Cingular filed documents with the Securities and Exchange Commission indicating BCGI will indemnify Cingular and its AWS unit regarding the lawsuit. But BCGI has indicated it may need to seek bankruptcy protection in the wake of the ruling, which may leave Cingular liable for the judgment.

Update (June 6, 2005): BCGI press release (May 20, 2005):

Before a final judgment can be rendered, the U.S. District Court in Massachusetts (the Court) is expected to act on additional post-trial motions and will hear a separate, non-jury trial regarding an unenforceability defense by bcgi and the other co-defendants. These additional motions and the trial are expected to begin on June 7, 2005 and to last approximately one to two weeks after they commence. If the Court rules in favor of bcgi and its co- defendants in the non-jury trial, the patents held by Freedom Wireless would become unenforceable, a decision that Freedom Wireless, Inc. may choose to appeal.

bcgi continues to believe that it does not infringe on the Freedom Wireless patents and that the patents are invalid in light of prior art. Therefore, if the Court rules against bcgi and the co-defendants in the non- jury trial, the Company expects to appeal the Court's decision to the Court of Appeals for the Federal Circuit.

Update (June 8, 2005): More at Forbes (AP - discussing the possibility of bankruptcy for Boston Communications).