AT&T files suit over prepaid phone unlocking scheme

AT&T has filed a suit against a number of companies it claims are buying AT&T prepaid GoPhones in bulk, unlocking them and then reselling them for a profit, which the carrier says is in violation of trademark law.

"In an effort to prevent these unlawful practices, AT&T retailers have, under AT&T's direction, implemented policies limiting the number of GoPhones an individual can purchase. Defendants, through their illicit bulk resale scheme, have taken steps to circumvent these policies by, among other things, employing large number of runners to make multiple purchases of GoPhones on behalf of the defendants," stated AT&T in the suit.

The carrier says it is losing millions of dollars because of the practice.

For more on the lawsuit:
- read this article from RCR
- read this commentary from Techdirt

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