T-Mobile Battles Prepaid Phone "Hackers" in Court

Posted by Kevin C. Thursday, June 4, 2009


T-Mobile has announced today, they have obtained four more separate final judgments and permanent injunctions as part of T-Mobile’s ongoing efforts to combat the unauthorized bulk purchase and resale of T-Mobile’s prepaid mobile phones, SIM cards, and other accessories. Traffickers typically buy the prepaid mobile phones in bulk from retail stores, hack into the phones’ software, fraudulently activate the SIM card, and then resell the phones and accessories to unsuspecting customers at a substantial profit. Since the phones still carry T-Mobile’s brand, consumers may believe they are purchasing handsets manufactured for T-Mobile and covered by original warranties.


Of the orders handed down, three were issued by a federal court in Los Angeles, enjoining Platform Enterprises, Delta Games Inc., California Products International Inc., and their principals. The fourth judgment was entered by the federal court in Dallas, permanently enjoining Arena Trading Inc. In addition, three of the judgments each award T-Mobile $5 million in damages.

Each of the final judgments and permanent injunctions permanently prohibits the defendants from engaging in any activities in any way related to the bulk purchase, unlocking or resale of T-Mobile phones and SIM cards, and from using the T-Mobile trademark. If the defendants violate the injunctions, the orders each provide a mechanism for enforcement by the courts and a minimum charge of an additional $5,000 in damages to be paid to T-Mobile.

“T-Mobile is committed to protecting consumers and our company by shutting down these traffickers,” said Dave Miller, senior vice president and general counsel, T-Mobile USA. “We are pleased by the results in the cases we have completed thus far, and expect similar successes in our other pending lawsuits.”

T-Mobile has previously been awarded more than $28 million in judgments entered in similar cases, as part of its concerted effort to protect consumers from prepaid phone trafficking. The company also has plans to file more cases soon.

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