BoingBoing Beats MagicJack Lawsuit, Wins $50,000

MagicJack sued BoingBoing for defamation after they had the gall to criticize the gadget maker’s EULA, and the blog has won, to the tune of $50,000.

BoingBoing argued that the user agreement gave MagicJack the right to analyze the calls of customers using its USB dongle device. The device allows users to make cheap calls over VoIP. BoingBoing fought back, and won. The judge tossed the defamation case after the blog’s successful anti-SLAPP motion, and MagicJack was forced to pay the blog’s legal costs, to the tune of $50,000. It’s safe once again to talk about consumer products even if the company hasn’t paid you to do it.

Here’s the section of the EULA that got the party started:

“You also understand and agree that use of the magicJack device and Software will include advertisements and that these advertisements are necessary for the magicJack device to work … Our computers may analyze the phone numbers you call in order to improve the relevance of the ads”

Any claims, legal proceeding or litigation arising in connection with the magicJack device or Software will be resolved by binding arbitration … in Palm Beach, Florida.”

MagicJack dials wrong number in legal attack on Boing Boing [BoingBoing]
MagicJack Legal Documents [BoingBoing]
MAGICJACK’S EULA SAYS IT WILL SPY ON YOU AND FORCE YOU INTO ARBITRATION [BoingBoing Gadgets]