Mobile carriers lose patent suit on prepaid calling plans

So, this just in — apparently, the concept of paying for service in advance is patentable, at least in the cellular world. Cingular and other mobile providers got slapped with a patent lawsuit over "prepaid" accounts, which aren't anything more complex than purchasing a certain amount of cellphone minutes in advance and drawing from them over time,
as opposed to going in for a regular per-month subscription allotment — it's not too prevalent here in the States but is much bigger overseas. Perhaps now we know exactly why it's not so big here in the States — because somebody,
somehow, managed to get a patent on the idea. Freedom Wireless, Inc. was awarded $128 million in a settlement against wireless carriers who were infringing on said patent by daring to offer prepaid wireless plans. This isn't great news for folks who don't pass carriers' credit checks, or for anyone who doesn't want to get tied down into
indentured servitude yearly contracts with cell carriers. And it isn't great news for folks who crave some sensible rationality out of the patent office — it seems sort of akin to patenting the concept of "gift certificate."

[Via Techdirt]