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Lynn Fosse, Senior Editor

Steve Alexander, Associate Editor

Bud Wayne, Editorial Executive

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Valerie Austin - Editorial Associate

INTERview










VoIP-Pal's new Amended Complaint: RICO Added Against AT&T, Verizon, and T-Mobile


Class Action and Antitrust Lawsuits Filed Against Major Telcos Now Reaches a Historical $346.86 Billion


Case 1:24-cv-03051-RDM - Filed 12/17/2024


Introduction by Bud Wayne

This is my third editorial covering VoIP-Pal's legal battle against AT&T, Verizon, and T-Mobile. The latest amended complaint takes the case to a new level with the most serious legal pleading to date: RICO (Racketeer Influenced and Corrupt Organizations Act). The implications of this development cannot be overstated. I will report the facts here, supported by direct quotations from VoIP-Pal's filings and leadership.


RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS ACT (RICO)


The RICO Act, enacted in 1970 as part of the Organized Crime Control Act, was designed to combat organized crime and hold accountable those involved in systemic racketeering activities. Before its introduction, law enforcement faced significant challenges prosecuting high-level leaders of criminal enterprises who distanced themselves from the illegal acts carried out by their subordinates. RICO provided the legal tools to pierce the corporate veil, target misconduct at its roots, and hold individuals at the top accountable.


Over the years, RICO's broad scope has evolved to address corporate misconduct and systemic fraud across legitimate industries, extending far beyond its original intent. It has become a critical mechanism to dismantle coordinated and deliberate schemes within corporations, imposing both civil and criminal penalties on those who orchestrate or tolerate systemic wrongdoing.


As VoIP-Pal's amended complaint highlights:


"The Racketeer Influenced and Corrupt Organizations Act (RICO) imposes heightened accountability on the executive teams, general counsels, and directors of the Defendants who knowingly participate in, facilitate, or fail to act against racketeering activities within their organizations. RICO's civil provisions under 18 U.S.C. § 1964(c) enable private parties to recover treble damages and seek injunctive relief directly from individuals, effectively piercing the corporate veil when misconduct is systemic and intentional."


By invoking RICO, VoIP-Pal seeks to expose the deliberate and systemic fraud orchestrated by the leadership of AT&T, Verizon, and T-Mobile. This elevates the case from a mere commercial dispute to one that challenges the very ethical foundations of these corporations. If proven, the RICO claim could result in trebled damages and shine a light on the deceptive practices buried deep within these telecom giants.


The Unchecked Profits of AT&T, Verizon, and T-Mobile


"AT&T, Verizon, and T-Mobile stand as glaring examples of unchecked corporate greed, achieving nearly $200 billion in combined gross profits in 2023—not through innovation, but through the systematic manipulation and exploitation of their own subscribers."


These telecom giants' massive profits have come at a cost—a cost borne not by innovation or progress but by their customers, who are treated as unpaid infrastructure providers. This exploitation, masked as business strategy, has turned consumer trust into a commodity to be drained. Their staggering revenues reveal a damning truth: these profits are fueled by deception, monopolistic practices, and a disregard for fairness.


The Core of the Complaint: Fraud and Misrepresentation


At the heart of VoIP-Pal's case lies the carriers' calculated misrepresentation of Wi-Fi calling as a "free" service, while burying its true costs within their inflated cellular bundles:


"The carriers' deliberate misrepresentation of Wi-Fi calling as 'free,' while embedding its true costs within inflated cellular bundles, constitutes a calculated and malicious scheme to deceive consumers and undermine competitors such as VoIP-Pal.

Subscribers were required to initiate Wi-Fi calling through their personal internet connectivity, for which they were already paying separately. Despite this, the carriers misleadingly presented the service as 'free,' masking the exploitation of consumer-funded resources and further compounding the deceit."


The complaint exposes a systemic strategy to exploit subscribers by leveraging their personal internet infrastructure without acknowledgment or compensation. It is a scheme rooted in fraud, designed to suppress competition and lock consumers into an ecosystem where their resources become corporate profits.


Exclusive Interview with VoIP-Pal CEO Emil Malak


In an exclusive interview, Emil Malak, CEO of VoIP-Pal, shared candid insights into the company's ongoing legal battles, his views on innovation, and the future of technology.


Q: Do you realize how serious a "RICO" complaint is?
A: I do, and I had no option. My shareholders have suffered enough.


Q: What do you think the reaction of these Goliaths will be to being labeled as racketeers?
A: Hopefully, it will wake them up and encourage them to settle with VoIP-Pal.


Q: VoIP-Pal has litigated for almost ten years in the federal patent courts against giants like Apple, Amazon, Google, Facebook, Twitter, Huawei, AT&T, Verizon, and T-Mobile. How do you keep going?

A: An excellent team. You are only as good as your team, and we have no option but to keep going. It's simple: either we give up or we defend our technology—and giving up is not in our DNA.


Q: But they will never settle; especially now with RICO—you've declared war.
A: No. War can easily be turned into peace; we can become the carriers' best friend.


Q: Explain how.
A: Remember, VoIP-Pal had the vision back in 2006 and patented Wi-Fi calling. The carriers should support our Wi-Fi technology innovation and pay for its past and future deployment.


Q: You have added the general counsels and all the directors in your complaint. Isn't that being vindictive?

A: I have nothing personal against these individuals. My hope is that everyone involved realizes it's time to settle out of court. VoIP-Pal is not here to disrupt the carriers; we want them to thrive, and we believe we can be a valuable partner in their success.


Q: The carriers will accuse you of being litigious. Why have you shifted from patent courts to Antitrust, the 1999 Telecommunications Act, and now RICO?
A: The America Invents Act (AIA) is unconstitutional. It allows large companies to infringe and litigate smaller innovators into bankruptcy.


Q: Unconstitutional is a strong allegation against the AIA Act. Can you elaborate?
A: Yes. The stacking of PTAB judges, ex parte reexamination requests over a decade after patents were allowed, and the accessibility of IPRs to anyone create an unfair system. More importantly, the PTAB acts as both judge and jury, eliminating due process. Silicon Valley got exactly what they wanted: stifled innovation and a tilted playing field.


Q: So, why use Antitrust, RICO, and the 1999 Telecommunications Act?
A: We had to think outside the box and leverage the appropriate laws to fight back. These laws exist for a reason, and we're using them to restore fairness.


Q: Are you not worried about your security? There are too many crazy characters out there.
A: Of course I am. But in life, you have to do what is right. The sooner we settle, the better for everyone—including my safety.


Q: You have over 30 patents, quite an achievement. What's next?
A: In today's world, receiving a patent from the USPTO is no longer the asset it once was for small inventors or start-ups. Instead, it has become a heavy burden—a liability.


Q: What do you mean by a burden or liability?
A: Small inventors and companies are up against tech giants—Silicon Valley and telecommunications Goliaths—who have endless resources. Fighting these corporations for years, even decades, is not just challenging; it's unsustainable.


Q: Who or what do you hold responsible for this?
A: The America Invents Act (AIA) was crafted to favor big corporations and suppress small inventors. Lobbyists succeeded in pushing through a "pay-to-play" system that undermines the constitutional protection of inventors' rights. Laws like this allow innovation theft under the guise of reform.



Q: What are your thoughts on the future of computer-initiated inventions?
A: Honestly, I see a troubling future for computer-generated inventions. Laws like Abstract Alice 101 hinder innovation by labeling groundbreaking ideas as too abstract. People need to realize that every invention begins as an abstract thought—a dream—that is nurtured, developed, and eventually brought to life. By dismissing early-stage ideas as "abstract," the system stifles progress.


Q: You are passionate about Artificial Intelligence. Why?
A: Over three years ago, I wrote an op-ed in your magazine predicting that AI would shape the future—and that future is now. Artificial Intelligence holds the potential to revolutionize every aspect of our lives, from healthcare and education to communication and innovation. We must support and encourage advancements like ChatGPT and other pioneers in this field. Even if their computer-generated inventions are labeled abstract under Alice 101, they represent a giant leap forward for human progress, creativity, and problem-solving.


Q: So, what's next for inventors like yourself?
A: There's always hope. Never give up. Innovation requires perseverance. It has taken VoIP-Pal nearly a decade of determination and relentless effort to bring our fight to this point. Now, I truly believe we are beginning to see a breakthrough. To all inventors out there: stay strong, keep going, and trust that persistence will eventually pay off.


Q: Your shares are down to below one cent. What's next?

A: As the CEO, I believe our shares are terribly undervalued, and I see tremendous potential for growth ahead. Of course, I'm biased, but I truly believe that with persistence and the resolution of our legal battles, the market will eventually reflect the real value of VoIP-Pal's innovative technology.


Conclusion: The Goliaths Unmasked, Justice Must Prevail


VoIP-Pal's decision to invoke RICO is a bold and necessary reckoning for the unchecked power of telecom giants. For far too long, AT&T, Verizon, and T-Mobile have operated as monopolistic juggernauts, siphoning billions in profits through fraudulent practices, while disregarding the laws meant to protect consumers and competition.

The facts speak for themselves:


They have manipulated subscribers into subsidizing their operations.


They have suppressed fair competition and innovation.


They have masked systemic fraud under the guise of "free services."


This is no longer just a legal battle—it is a fight for accountability. By invoking RICO, VoIP-Pal has laid bare the truth behind the telecom giants' practices: unchecked greed masquerading as business strategy. Whether through settlement or a courtroom trial, the outcome of this case will send shockwaves across the telecommunications industry and Silicon Valley.


The time for corporate impunity is over. The Goliaths have been unmasked. Justice must prevail.


NOTE: This content is not the view of nor endorsed by CEOCFO Magazine or its advertisers.

VoIP-Pal is actively developing the next phase of Wi-Fi calling technology, which we believe will be transformative for the industry. Our technology could become the carriers' best ally in adapting to the evolving telecommunications landscape.

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