You won't see the court drama, but a deal over your phone just let AT&T and T-Mobile off the hook for a massive payout
Both carriers have settled patent infringement lawsuits (subscription required) with Headwater Research, avoiding trials that were set to kick off this week. The lawsuits claimed AT&T and T-Mobile were infringing on wireless communication patents – specifically technologies meant to reduce data usage and ease network congestion. Headwater says these innovations came out of a 2009 meeting between its founder, Gregory Raleigh, and AT&T employees.
These settlements probably weren't a total surprise. Just recently, Verizon got hit with a $175 million jury verdict in a very similar case. That kind of blow likely nudged AT&T and T-Mobile to cut a deal before risking multi-million-dollar damages themselves. The terms of the settlements haven't been revealed, and both companies asked the court to put proceedings on hold. Headwater Research has been on a legal tear, targeting big wireless carriers over alleged patent infringements. Earlier this year, the company also scored a $279 million jury verdict against Samsung, related to two patents covering mobile phones, tablets, and TVs.
Yep, Samsung was also found guilty of miusing Headwater's tech for its phones, tablets and other devices. | Image credit – PhoneArena
For context, Headwater sued T-Mobile back in August 2023 and followed up with AT&T about a week later, claiming each carrier infringed on two separate patents. All the patents revolved around wireless communication tech. T-Mobile 's trial was set for this Friday, and AT&T 's was supposed to start Thursday. So, by settling, both carriers sidestepped the chance of another Verizon -style multi-million-dollar verdict.
So, what exactly does Headwater do? The company is a tech incubator focused on mobile operating systems and cloud infrastructure for modern smartphone apps and services. According to court filings, it developed tech that reduces data usage, eases network congestion, extends battery life by lowering power consumption, and improves device connectivity – basically, stuff we all want.
While the available sources right now about the lawsuits against AT&T and T-Mobile didn't specify the exact patents, the Verizon case gives a hint. Headwater claimed it shared its tech under a non-disclosure agreement with Verizon between 2009 and 2011, only for Verizon to allegedly use those innovations in phones, tablets, and networks without a license. The settlements suggest AT&T and T-Mobile may have done something similar. Even without all the specifics, the core issue revolves around wireless communication improvements meant to make networks faster, devices smarter, and users happier.
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