T-Mobile USA, Inc. v. Terry

862 F. Supp. 2d 1121, 103 U.S.P.Q. 2d (BNA) 1543, 2012 U.S. Dist. LEXIS 56618, 2012 WL 1409287
CourtDistrict Court, W.D. Washington
DecidedApril 23, 2012
DocketNo. 3:11-cv-5655-RBL
StatusPublished
Cited by19 cases

This text of 862 F. Supp. 2d 1121 (T-Mobile USA, Inc. v. Terry) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
T-Mobile USA, Inc. v. Terry, 862 F. Supp. 2d 1121, 103 U.S.P.Q. 2d (BNA) 1543, 2012 U.S. Dist. LEXIS 56618, 2012 WL 1409287 (W.D. Wash. 2012).

Opinion

ORDER GRANTING PARTIAL SUMMARY JUDGMENT AND ENTERING PERMANENT INJUNCTION AGAINST DEFENDANT GEORGE COLLETT

RONALD B. LEIGHTON, District Judge.

THIS MATTER is before the Court on Plaintiff, T-Mobile USA, Inc.’s (“T-Mobile”) Motion for Partial Summary Judgment Against Defendant George Collett (“Motion”). [Dkt. # 134]. T-Mobile contends that there are no material facts in dispute and summary judgment should be granted in T-Mobile’s favor on its Federal [1125]*1125Trademark Infringement and False Advertising (Count One), Trafficking in Computer Passwords (Count Three), Unauthorized Access With Intent to Defraud (Count Four), Theft of Computer Data (Count Five), Unauthorized Access (Count Six), Unfair Competition, O.C.G.A. § 23-2-55 (Count Eight), Civil Conspiracy (Count Nine), Georgia Computer Systems Protection Act, O.C.G.A. § 16-9-93 (Count Thirteen), and Deceptive Trade Practices, O.C.G.A. § 10-1-372 (Count Fourteen) claims (collectively, T-Mobile’s “Claims”). The Court has reviewed the case file, considered testimony, and heard argument for and against the motion, and being otherwise duly and fully advised in the premises. For the following reasons, the Court GRANTS the Motion for Partial Summary Judgment Against Defendant George Collett and enters a permanent injunction.

The Court makes the following findings:

This Court has jurisdiction over the parties and the claims set forth in T-Mobile’s Amended Complaint.

A. T-Mobile’s Business Model

. T-Mobile has the right to use and enforce said rights in the standard character mark T-Mobile and a stylized T-Mobile Mark (collectively, the “T-Mobile Marks”), as depicted below:

T

T-Mobile uses the T-Mobile Marks on and in connection with telecommunications services and products, which are provided nationwide.

T-Mobile’s prepaid programs provide T-Mobile customers with wireless service without a term contract, deposit or activation fee. To obtain service, customers purchase a T-Mobile phone from T-Mobile or from an authorized T-Mobile dealer or retailer, pay for the first month of service, and then pay a monthly fee in advance for their service on T-Mobile’s wireless network for that month. T-Mobile subsidizes each handset, or, in other words charges its customers less for the prepaid phone than it cost T-Mobile to purchase it. T-Mobile recoups the loss over time through the sale of T-Mobile services. Along with the phone, customers receive a SIM card, which is inserted in the handset. The SIM card allows the phone to access the T-Mobile wireless network, and to track and regulate airtime usage. Both T-Mobile SIM cards and handsets carry the T-Mobile Mark.

The SIM card provides access to T-Mobile’s wireless network only if it is properly activated, which can only be accomplished through a confidential and proprietary website or through a T-Mobile customer service representative. To activate a T-Mobile SIM card, an authorized T-Mobile dealer must enter a confidential activation code into T-Mobile’s secure activation website or orally give the code and customer-related information over the phone to the T-Mobile customer service representative. Upon receiving all of the required information, T-Mobile then activates the SIM card, and the customer may use the SIM card to access the T-Mobile wireless network.

T-Mobile’s post-paid business accounts allow businesses to purchase and activate numerous phone lines from T-Mobile on a post-paid basis, usually with unlimited airtime and a variety of services. . These activations can only be legitimately made in T-Mobile’s computer systems by a T-Mobile representative or authorized T-Mobile dealer.

B. Defendant’s Illegal Conduct

Defendant and his co-conspirators engaged in unlawful business practices involving the unauthorized use of T-Mobile’s [1126]*1126trademarks, the unlawful acquisition, purchase and sale of T-Mobile SIM cards and airtime, the fraudulent activation of those SIM cards for use on T-Mobile’s prepaid services, the illegal procurement, use, and sale of proprietary codes, identifiers, and methods for defrauding T-Mobile out of airtime and services, the bulk purchase and resale of T-Mobile Phones, computer unlocking of T-Mobile Prepaid Phones, alteration of proprietary software computer code installed in the Phones for T-Mobile, and trafficking of the Phones and SIM cards for profit. Defendant conspired with others to acquire and resell T-Mobile prepaid handsets in bulk to their financial benefit. Bulk purchase and resale of T-Mobile handsets in order to profit from the subsidy that was intended to benefit T-Mobile customers violates T-Mobile’s rights. T-Mobile’s rights are similarly violated by the purchase and resale of large quantities of new T-Mobile phones by a entity that is not an authorized dealer of T-Mobile products.

Defendants also acquired large quantities of T-Mobile SIM cards and, through fraudulent means activated those SIM cards on T-Mobile’s network. There is no legitimate reason for anyone to buy or sell bulk quantities of T-Mobile SIM cards. Defendant and his co-conspirators utilize improperly-acquired confidential codes to hack into T-Mobile’s proprietary database with the intent of defrauding T-Mobile and stealing airtime and other services for their own use and for sale. Defendant then affirmatively advertised to the public that the SIM cards for sale, which were loaded with illegally-acquired airtime minutes, are authentic T-Mobile SIM cards properly activated for use on T-Mobile’s wireless service. Mr. Collett admits to this activity. He testified that he sold T-Mobile Phones and SIM cards on eBay and Craigslist, purchased T-Mobile SIM cards, pin numbers and activation codes, posted a sign in his store saying “unlimited T-Mobile service $50 a month” and falsely advertised that he was a T-Mobile dealer. Defendant, who is not an authorized T-Mobile dealer, has also improperly advertised that his store is a T-Mobile store and that his store has an unlimited T-Mobile service plan for $45 per month without a credit check. These representations were false, as George Collett’s store and the service plans he offered were not sanctioned by T-Mobile.

C. Harm Caused by Defendant’s Schemes

Defendant’s actions have substantially harmed T-Mobile by, among other things: defrauding T-Mobile into providing airtime without receiving compensation; causing T-Mobile to incur the cost of paying a third-party carrier for roaming charges and overseas calls made using the fraudulently-activated SIM cards; depriving T-Mobile of the opportunity to earn profits by providing service to legitimate T-Mobile consumers; stealing handset subsidies provided for legitimate customers; and tarnishing T-Mobile’s reputation.

The fraudulent activation of wireless service accounts by Defendant and his co-conspirators irreparably harms T-Mobile because it deprives T-Mobile of the means to control the quality of its product. Further, purchasers of Defendant’s “unlimited” service blamed T-Mobile when their service was deactivated as a fraudulent account.

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Cite This Page — Counsel Stack

Bluebook (online)
862 F. Supp. 2d 1121, 103 U.S.P.Q. 2d (BNA) 1543, 2012 U.S. Dist. LEXIS 56618, 2012 WL 1409287, Counsel Stack Legal Research, https://law.counselstack.com/opinion/t-mobile-usa-inc-v-terry-wawd-2012.