Freedom Wireless, Inc. — Phoenix, Arizona. A closely held (private) wireless-technology development and patent-licensing company. Its patents trace to inventors Douglas Fougnies and Dan Harned and to predecessor firms Cellular Express, Inc. and Cellexis; the first application was filed in December 1994, and the company's roots are as a mid-1990s prepaid cellular reseller. By the time of its litigation campaign it was very small — contemporaneous reporting (Law.com, 2007) described it as a "four-person operation" and a "tiny privately held" firm led by president Larry Day. No public revenue or headcount figures beyond that were located.
Operations. Freedom Wireless did not operate a commercial prepaid network. Its business was developing and licensing patented technology for prepaid wireless service — pay-as-you-go calling in which the switch identifies a subscriber, a host computer validates the account against a database, and the balance is decremented in real time without requiring PIN entry or 800-number dialing. Asserted patents include U.S. 5,722,067 ('067), 6,157,823 ('823) and 6,859,646 ('851), all covering prepaid cellular systems and card-based account top-ups. Press releases named licensees including bcgi/Xius, Telcordia and Virgin Mobile.
Litigation posture. The case data (7 plaintiff, 2 defendant) shows a one-directional enforcer: it sued wireless carriers and prepaid service providers, and appeared as a defendant only in declaratory-judgment actions brought against it (Cingular Wireless LLC et al. v. Freedom Wireless in the District of Arizona, resolved on jurisdictional grounds in 2007). Several infringement suits were filed in the plaintiff-friendly Eastern District of Texas, Marshall Division — against Alltel, Cingular/Ericsson, VeriSign and Comverse, and Centennial — while the BCGI case proceeded in the District of Massachusetts.
Notable cases. Freedom Wireless v. Boston Communications Group produced a $128 million jury verdict (May 20, 2005, D. Mass.) against BCGI, Cingular, AT&T Wireless, CMT Partners and Western Wireless; upheld post-trial, then settled in July 2006 for $87 million ($55.3 million from BCGI). In May 2008 VeriSign settled the Texas suit for a confidential sum plus transfer of 10 U.S. and 12 foreign prepaid-wireless patents, expanding Freedom's portfolio.