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Thu, Jan 08, 2009 - 08:03 AM EST  —  AAPL: 91.01 (-2.01, -2.16%)  |  NASDAQ: 1599.06 (-53.32, -3.23%)

Lawsuit accuses Apple, AT&T of over-saturating 3G network with iPhones
Wednesday, September 03, 2008 - 09:33 AM EST

"A San Diego-based lawsuit filed late last week alleges that Apple and its carrier partner AT&T have knowingly oversold iPhone 3G, promising fast speeds only to see a glut of customers bog down the network with devices that themselves are flawed," Aidan Malley reports for AppleInsider.

"The 18-page complaint from customer William Gillis primarily relies on Internet reports of problems as the foundation of its argument and asserts that leaked information contradicts public statements by either of the defendant companies regarding 3G network performance," Malley reports.

"Gillis particularly criticizes AT&T. Although company new media representative Brad Mays has gone on record as saying the iPhone 3G has been 'performing great' on its 3G network, the plaintiff counters by pointing to claims that the handset has required too much power. In tandem with the 'high volume' of iPhones sold, the sheer signal demand has bombarded AT&T and in many cases kicks users down to the EDGE-based 2G network even when 3G coverage is guaranteed, according to the lawsuit," Malley reports.

Full article here.

MacDailyNews Take: Basing a lawsuit on Internet reports, rumors, and speculation is likely to be specious at best and frivolous at worse. Apple should countersue for all costs incurred. Furthermore, the U.S. really should consider some sort of meaningful tort reform if fishing expeditions like this are allowed under current laws.

Newsflash: new software combined with multiple-millions of devices being unleashed onto a network in a very short period of time will likely result in issues that require tuning. That is what we believe is happening at this time. iPhone 3G was released in the U.S. on July 11, 2008 - less than two months ago! Apple and their carriers really should be given an adequate and realistic amount of time to tune their software and networks before any lawsuits are filed.

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Reader Feedback: ( = registered)

Sep 03, 08 - 08:37 am Comment from: macaholic

Shakespeare was right!

Sep 03, 08 - 08:43 am Comment from: El Guapo

@macaholic
Shakespeare was right!

Okay (sigh), I'll bite. How was Shakespeare right?

Sep 03, 08 - 08:44 am Comment from: x

The biggest problem is that these people are just plain babies, and daddy was missing in action. They need to grow the fsck up.

Sep 03, 08 - 08:49 am Comment from: CYxodus

@El Guapo

"Kill all the lawyers".

Sep 03, 08 - 08:49 am Comment from: wow

you would think it is public knowledge that apple has over 20 BILLION in cash no debt?

Sep 03, 08 - 08:51 am Comment from: caddisfly

...they sold too many - sue them!

Sep 03, 08 - 08:52 am Comment from: Raphael Salgado

With the current situation of AT&T;'s data service being down nationwide, I'm beginning to see that this lawsuit may have some merit. This downtime is brutal.

Sep 03, 08 - 09:05 am Comment from: DH

" Kill everyone of them " and don't allow them to breed future ambulance chasers. No question that we should make idiots pay for frivolous lawsuits, which delay real victims from getting their day in court. No wonder Congress is so screwed up ... how many of them are lawyers ? answer: too many.

Sep 03, 08 - 09:05 am Comment from: macster

I don't care who is to blame or what the problem is, just fix the friggin problem already. I have given up trying 3G and run only on Edge now. The only thing that 3G seem to do better for me wicked fast is drain the battery.

On a related note, did anyone else have a problem with both the 3G and Edge networks this morning? I couldn't load webpages or check email for over an hour.

Sep 03, 08 - 09:09 am Comment from: Crabapple

How about suing the US Government?

They after all passed legislation that has allowed for this fiasco to happen. If they had insisted on the best form of communication as a standard and then protected the different operators so that they wouldn't loose market share to undercutting rivals, America would have a similar system to Europe or Japan.

Now that these flaws have been exposed by the introduction of technology that makes full use of 3G bandwidth, perhaps they will now pay close attention to the fact that protectionism in a capitalistic environment has resulted in stifled progress and do something about it.

In the meantime, if every innovative product was to be greeted with lawsuits because the product did not deliver from day one, then it goes to say that the goose that lays the golden egg (innovation) will be killed or else move elsewhere away from the USA to perhaps China or the Asian continent.

Sep 03, 08 - 09:16 am Comment from: Demon

Contingency legal fees need to be made unethical by the state bar associations. If the legal profession will not regulate itself however, then the states need too.

Sep 03, 08 - 09:18 am Comment from: GizmoDan

Somebody on the internet complained, so I need money.

Wow, what an argument!

Sep 03, 08 - 09:25 am Comment from: Macaday

Whoa there! SLOW DOWN this here thing called progress....

We don't want no advancement round here...

Laughable.

Sep 03, 08 - 09:32 am Comment from: sue

i'm gonna sue because i went to new jersey one time and it sucked!

Sep 03, 08 - 09:36 am Comment from: Mr. Reeee

Crabapple...
I'm not making excuses, but unfortunately, the land mass of the US makes it much more difficult to wire, or wirelessly cover the entire thing. Or even just the major metro areas, because of the number, size and distances between. Japan and Europe are smaller, so it's easier to create a pervasive network.

Clearly our Gummint has "other priorities" than serving the citizenry. (can of worms stays closed)

I've spent quite a bit of time in Bulgaria and you can literally get a good cell phone signal ANYWHERE. Bulgaria is 42,820 square miles, which is about the same size as Virginia.

Sep 03, 08 - 09:36 am Comment from: yeah right

"even when 3G coverage is guaranteed"

Where the hell is that?

Sep 03, 08 - 09:40 am Comment from: HMCIV

Can we sue William Gillis for clogging the news media?

Sep 03, 08 - 09:45 am Comment from: nobodi

They do know that the iPhone is not the only 3G phone don't they?

Since they are other 3G phones out there, it is highly unlikely that it is the 3G iPhone that is responsible for AT&T;'s 3G network issues.

Sep 03, 08 - 09:55 am Comment from: Peruchito

should this be an AT&T;only suit? why does apple take the blame? can we sue the car companies for selling too many cars and now there is no gas? wait... maybe we can

Sep 03, 08 - 10:00 am Comment from: Crabapple

@ Mr. Reeee
Point taken, by your same argument, what is stopping Virginia, Ohio, Texas, Nevada, Colorado or Wisconsin from adopting a single standard?

If each state were to adopt a single standard, the there would be room for some innovative company to introduce software that would translate the differing standards so that interoperability would be possible albiet at a slightly higher price. Remember Rosetta?

Finally, I imagine that the troops in Iraq, Afghanistan, Germany, On Battleships, Submarines are somehow communicating to home on a global scale? If various sub-branches of the US government can communicate easily from around the World, what is stopping the US from communicating internally just as easily?

Sep 03, 08 - 10:07 am Comment from: Jersey_Trader

Watch out Ford, GM and the other car manufacturers. If this works, you are next. You sell us these cars that are shown to reach highway speeds and then you flood the market and the highways turn into parking lots!

Why would anyone even try to file a lawsuit against Apple for a carriers temporary inability to absorb growing traffic in some parts of their network. Did AT&T;say that they would not work on or fix this? The legal action should be if you can't handle the traffic, let us use another carrier!

Sep 03, 08 - 10:46 am Comment from: hortense the cow

Hortense recommends the Shakespeare addicts should read the book "Kill All the Lawyers" by William Deverrell, a great Canadian author whose works are addictive. Too bad his books aren't readily available in Canadian bookstores.
His latest book is entitled "Kill All The Judges" , go to
http://www.deverell.com/ if you don't believe Hortense.
Deverell's book "Street Legal" was made into two tv series, one in Canada, one in NZ.

Sep 03, 08 - 11:21 am Comment from: Prince Derek of Milan

I, Derek of Milan, would like to say that:


One - its a frivolous lawsuit based on the knowledge that a company may settle to make you go away, and save court costs.

Two - William Deverell is a very average writer, which is why his books arent readily available even in Canadian bookstores.

HOW you connect Shakespeare to Deverell is beyond my understanding.

I guess along the lines of " I saw a Rolls Royce yesterday and now I am going to buy a kitten"

Cognitive dissonance has its place, it seems.

Sep 03, 08 - 11:34 am Comment from: zek

These lawsuits aren't about whatever dimwit it is that actually filed them, they are just a way to get the voice of all the dull product makers in the news, because they don't have anything interesting or new to present in the way of products. They have to resort to badmouthing Apple.

Sep 03, 08 - 11:52 am Comment from: BizarrO BaLlmEr

who knew sales would be so good.

Sep 03, 08 - 12:03 pm Comment from: Peruchito

i have decided to sue Ford, GM, Toyota and Honda, for selling too many cars. it has ruined road conditions that i can't drive comfortably without hitting pot holes etc. as well, my car says i can drive up to and over 200 km per hour but the roads do not allow me to travel that fast. in fact, i am suing the government for capping speeds on the road, and not allowing me to travel at the maximum velocity that my car can travel. i am also suing the car companies for selling too many cars, that causing the gas shortage, and rise in gas prices.

Sep 03, 08 - 12:10 pm Comment from: Jim - TIV

If we kill all the lawyers, who will run for president on the democratic ticket?

(ducks)

Sep 03, 08 - 12:58 pm Comment from: Pete

Jim - TIV,

People seem to prefer halfwits and morons anyway. Intelligence is not a requirement in this system.

Sep 03, 08 - 01:04 pm Comment from: silverwarloc

@Crabapple:

Military communications is very different from phone companies. If you are from a different part of the country, say, Kuwait. You can make a phone call home like you would with ATT through the local carriers. However, with a military phone call (DSN), I can make a direct call to the local operator where I live and asked to be patched through my home. All for free.

If I were on a ship, I can get a direct satellite uplink and call directly home. So, it would really depend on where you are.

Sep 03, 08 - 03:26 pm Comment from: Lurker_PC

I swear I should start a website called - MDL - MacDailyLawsuits. All the latest and greatest information about who now is trying to sue Apple, info on the status of the cases as they travel through the court system, and discussions on the results of the cases.

Peace.

Sep 03, 08 - 03:33 pm Comment from: Peruchito

@lurker

i would love that. as long as you follow up on the status of suits.

Sep 03, 08 - 03:37 pm Comment from: zato

It's a Anti-Apple black PR lawsuit. Expect one about every 3rd week after a major product release. A cheap way to get tens of thousands of pages of negative Apple press all over the internet, world-wide.

Sep 03, 08 - 08:38 pm Comment from: bobchr

Motorola had a decent Sattelite base cell system back in the late 90's that used 120 sattelites curcumnavigating the globe and allowing people to make and receive calls from Greenland to Antartica and everywhere in between. I think AT&T;with there resources could have applied a cheaper laternative using using modern solar powered dirigible based transceivers. Sort of like a lower hovering sattelite system. 10 ballons per state would probably cover the entire US including the US and Hawii and up to 100 miles off shore. Kept in the 45-55thousand feet atrea it would be out of the way of most ari traffic.

Sep 04, 08 - 09:45 am Comment from: James Katt

There should be a law making it a felony to make frivolous lawsuits and give the lawyer making them the death penalty. We need fewer such lawyers in the world. After all, isn't it a better world when such lawyers are buried 6 feet under?

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