Tracfone targets unlockers

Tracfone Wireless Inc. has turned up the heat on the cellphone black market, securing a slew of court judgments to halt the resale of prepaid phones altered to work on cellular networks other than those of the prepaid mobile-phone company.
“TracFone is committed to putting an end to these unlawful practices,” said James Baldinger, outside counsel for Miami-based TracFone. “We intend to file many more lawsuits around the country, and we are also working closely with law enforcement, private investigators and handset manufacturers to attack the perpetrators from all sides. Anyone engaged in this practice should be concerned that they may be our next target.”
The legalities of handset unlocking came to the fore in recent years on reports of individuals buying large quantities of prepaid phones at major retailers and then hacking them for resale or other purposes. The issue became even more problematic when the Library of Congress ruled in November 2006 that U.S. copyright law is not violated by the unlocking of phones. However, courts overseeing TracFone lawsuits interpret the new law as not applying to purchasers of prepaid phones that are disabled and resold for profit.
The issue could also have implications for Apple Inc.’s iPhone; the company is currently working to dissuade iPhone owners from using software programs to unlock their devices.