WASHINGTON-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.
