MagicJack sues BoingBoing, loses the case and its credibilty

By on Feb 24, 2010 at 2:37 PM
News February 24, 2010

magicjack

MagicJack, creator and distributor of the popular dongle-based PC VoIP solution, has some problems with its credibility. Back in 2008, BoingBoing revealed some of the companies disingenuous business practices which include but are not limited to: a fake visitor counter on its website that increased automatically on its own, a bogus MagicJack detection page that claims a functioning MagicJack device is connected when none is present, and serious problems with its EULA that allows the service to screen calls and send targeted ads to users while also forcing users to waive their rights to sue in court. Rather than acknowledge its culpability and change its practices, MagicJack dragged BoingBoing into court with a charge of defamation. When it was shown that the BoingBoing article was not defaming, the case was dismissed and MagicJack was ordered to pay $50,000 in legal costs to BoingBoing. Rather than accept the penalty and move on, MagicJack CEO Dan Borislow blamed the incompetence of his lawyers for the loss and tried to buy BoingBoing’s silence by offering the online news site a settlement if the contents of the lawsuit and settlement were kept private. BoingBoing refused to be silenced and now the lawsuit, its outcome, and MagicJack’s futile attempt to cover its tracks are exposed for the world to see.

[Via TechDirt]

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  • Aita

    and there goes my want to get this product…..

    • betchplz

      Just when you thought $20 a year phone was too good to not be true!

      This must be the workings of the big wireline telecos trying to throw dirt at a good wholesome business like Magicjack!

  • http://www.doinadroid.com Droid

    It’s people like you that make it difficult for people like me to be first.

  • Thomas

    Egg….meet face.

  • LocoChewy

    Is anyone surprised a company that sells phone service for $20 a year (which is less than most companies charge a month including VOIP) is selling people’s info to make money. They have to somewhere. Also I have met the founder a few times as him and his majicjacks (the kids soccer team he sponsors) have come in to shop in my store. He seems like a very nice guy and I hate to hear this.

  • http://www.facebook.com/Drummer85 Creamy Tuna Casserole

    Facepalm…that is all.

  • gmac

    Good, I’m tired of seeing their commercials.

  • Andrew

    Who gives a fuck, give us something good BGR.

  • Jones

    That’s weird. I would never expect this from a guy that exploits his kids (and his puppies) in a video on his company’s home page.

    • http://www.applebythehour.com Jarrett

      Agreed, you should never exploit an animal.

    • Jones

      Not sure if anyone got the fact that I was joking about the puppies.
      But I hate these commercials where they put their stupid kids on the there to show everyone what good guys they are (because if their kids love them, then you should too).

      “Look at me, I’m a family man. Aren’t my kids cute? Doesn’t it give you warm fuzzies? Well then come on down and buy my crap!”

      • jpg

        what about a guy who exploits a tiger? you know who i’m talking about…

      • carig

        it’s ok ’cause that tiger could bite his head off in a second if it wanted to

  • http://www.facebook.com/Drummer85 Shamu

    But I love being exploited!!

    • jpg

      that reminds me, would you like to buy a new number that i invented? it’s not real but it has a lot of practical science and mathematics applications. just drop me a line anytime. and if you buy it now for the low price of $100,000, i’ll even include a book that i wrote called, “my autobiography: a tale all about me” with my autograph right on the very first page! interested?

  • http://www.dasouth.com Zee

    My business dropped Vonage to go to magicjack a few years ago. Was one of the worse business moves I could’ve made. Vonage did everything they could do to keep me from leaving, even offering me 6 months of free service on two lines. I still left after that. Boy did I make a huge mistake! I came back to Vonage and they STILL offered me a great deal just for returning! I’ve been with them for quite a few years now. We were one of the first to jump on board with them. They’ve NEVER let us down.

    Go VONAGE NATION!!!!!!!!!!

  • DL

    Why is it that we never learn “what SOUNDS too good to be true most likely IS too good to be true?” If there were a legitimate way to provide the exact same phone service we all expect for 1/10 the price, don’t you think it would completely disrupt the telecom and VOIP industries?

  • http://www.facebook.com/Drummer85 Creamy Tuna Casserole

    A visitor counter, seriously? Did MagicJack create their website with Geocities?? Why would any legitimate business operation need a visitor counter? You don’t see Vonage, Skype, Lingo, etc. with visitor counters on their websites.

  • Borislow

    Funny that BGR site is plastered with MagicJack adds. Crappy product, shady mgmt, but their checks don’t bounce, eh?

    • MoJo

      Is this Dan Borislow? Dude it ain’t BGR who chooses what ad’s are displayed … for the most part it is up to the content owners and the advertising company. All BGR does is rent out ad space.

      I guess knowing this now, they can block your advertisements … but be careful as the damage this does in a community such as this can bring unwanted attention. Like engadget, gizmodo, and etc boycotting you because this blogosphere is more tight knit than you can understand.

  • reena

    Ahh its so refreshing to see the professionalism of top executives. Better than sugar coating it but if your product really is that much better, shut up and let it do the talking for you.

    Details: Let’s just see how MagicJack will pull this one off

  • Malcolm

    Who cares about the phony counter, etc. Trivial stuff that I did not pay attention to anyway.

    Magic Jack is still a wonderful product with great voice quality. And, the price is what they state, no hidden fees. I will not hesitate to recommend their product.

  • carig

    I can’t say I’m too surprised, I never knew what to think about MagicJack since in theory it seems like a great deal but their commercials always made it seem like a huge ripoff.

    I guess it’s just that they’re a terrible company, always good to see shitty companies get burned.

  • MoJo

    As a user of MagicJack, I would like to chime in. The company, I don’t know much about, and this includes the conduct of their management. As a product, it is quite the most useful little investment when all things work. I have saved sooo much in using it, it is portable so that means you can take it on trips … heck I wasn’t so lazy, I would of rigged my entire home phone wiring to the magicjack.

    The owner seems like a sleazball and so I cannot excuse his conduct, shame on him for being shady. But really a website counter and a web app that acts like it is fixing the device is very low on my priority. That website needs a redo anyways, as this is a serious product being marketed in a tacky con-man style.

  • Mike

    Oh wow. Go to their website. The video is sooooo awkward.

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