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Re-activateNot long ago, we tested the MagicJack and found that, unlike many infomercial products, it actually worked. We mentioned some drawbacks found in the MagicJack's end-user licensing agreement (EULA): in particular, that MagicJack is ad-supported, and that it "may analyze the phone numbers you call in order to improve the relevance of the ads."
BoingBoing had been the first to notice those drawbacks, and published a post in 2008 highlighting them. It also noted that the EULA couldn't be found on the MagicJack site, and seemed to be accessible only via a Google search. (See the EULA here).
MagicJack sued BoingBoing for defamation and recently lost. Our sister site, The Consumerist, reports:
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.
A SLAPP lawsuit—that is, a "strategic lawsuit against public participation"—is a legal tactic used to censor criticism. The aim is not to win the suit, but to force the critic to succumb in the face of overwhelming legal costs.
—Nick K. Mandle
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