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Moto Xoom drops plan requirement, hit with trademark lawsuit

updated 07:50 am EST, Thu February 24, 2011

Moto Xoom drops plan but gets trademark lawsuit

Verizon on Thursday began selling the Motorola Xoom and offered an olive branch to users. The company has responded to near-universal complaints over plan requirements and told Electronista it will no longer force those paying the off-contract $800 price to pay for at least a month of service to get Wi-Fi. The savings will slash the $55 minimum of 'hidden' fees for both the month of 3G and activation.

The $600 contract pricing by its nature still requires service and activation. Apple's iPad is still considerably less expensive and costs about $70 less for a 32GB version, which should become competitive in hardware features next week. Most don't expect Apple to change the price.

Motorola nonetheless faced a new setback as it was sued on Wednesday for trademark infringement. Xoom Corporation filed a complaint in a Northern District of California court accusing Motorola of "willful and intentional" misuse of its name. The company primarily handles online money transfers but has filed trademarks since 2004.

Motorola hasn't commented on the lawsuit but may have assumed that a tablet was in a different category and wouldn't clash with the trademark.

Xoom Corporation hasn't specified particular sums for reparation but has called for "treble damages" (triple) and a preliminary injunction that would ban the Xoom tablet from sale during the course of the trial. Unlike patent troll suits, Xoom the company is believed to be going for more than just cash and has hired the top-tier legal firm Morgan Lewis to represent itself for the case.

The case is unlikely to go through a complete trial due to the consequences for Motorola of jeopardizing its only tablet's chances. It may reach a deal with Xoom Corporation but could also try for a summary judgment that would rule the suit invalid if it can persuade the court that the trademark is in the wrong category. [lawsuit via Florian Mueller]



By Electronista Staff
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Comments

  1. Chud73

    Fresh-Faced Recruit

    Joined: Jul 2010

    +7

    Ah not so true there or at least you still

    have to go through ordering the product with service plans they offer. Then you have to call their 800 number to cancel that service plan. Plus you WILL be charge a Activation fee etc, which you will then need to have refunded when you call.

    Heather: You are still required to choose a plan, however once you get it you can cancel it.

    Heather: However during the ordering process it's required to choose a service plan. Once you get it just call Customer Care 800-922-0204 to remove the plan.

    Chet: So, will they refund the $35 activation charge and other fee's too?

    Heather: Yes they will.

  1. Tofino

    Fresh-Faced Recruit

    Joined: Apr 2005

    +3

    Trial balloon

    Was Motorola testing the IQ of their potential customers?

  1. bigmig

    Fresh-Faced Recruit

    Joined: Jan 2004

    +4

    Treble damages, huh?

    So let's see, after Motorola sells all of 14 Xooms under their crazy pricing scheme, then the Xoom Corp. might get 14 Xooms x $20 "damages" per Xoom x 3 = $840. I doubt that will even cover the court costs. You lose, Xoom Corp.

  1. charlituna

    Fresh-Faced Recruit

    Joined: Sep 2009

    +1

    lawsuit

    trademarks are fairly specific and it is possible that Motorola will be fine because they aren't doing anything with money transfers etc.

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