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MagicJack sues BoingBoing, loses the case and its credibilty

February 24th, 2010 at 2:37 PM

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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