WASHINGTON—A federal court has ordered a Florida firm to immediately halt “unlocking” TracFone Wireless Inc. pre-paid cell phones. Unlocked phones can be used on cellular networks other than those affiliated with the prepaid wireless provider.
TracFone, the nation’s largest pre-paid cell phone company, and handset manufacturer Nokia Corp. had sued Sol Wireless Group Inc. and another Florida firm, Pan Ocean, to cease what they said amounted to copyright infringement and other violations of the law.
The permanent injunction issued by U.S. District Judge Cecilia Altonaga in Miami was prompted by a settlement among lawyers for TracFone, Nokia and Sol. Any violation of the permanent injunction could lead to payments of as much as $5,000 per phone to TracFone. A lawyer for Sol Wireless said the two-man operation is walking away from the business.
Sol Wireless has denied any wrongdoing.
Similar suits against Pan Ocean are proceeding.
Speculation has been raised that large purchases and alleged unlocking of pre-paid cell phones are linked to black market sales of handsets, a matter probed by federal investigators in recent months.
In the United States, most cell phones are bundled with service from a specific carrier. Carriers typically subsidize the cost of the phone since it can only work with their network.
In Europe however most phones are sold unlocked—and unsubsidized—and can work on the networks from a variety of carriers.
