SEATTLE, Dec. 2, 2011 /PRNewswire/ -- A group of consumers
filed a nationwide class-action lawsuit claiming that smartphone
manufacturers HTC Corporation (TWSE: 2498), HTC America, Inc. and
Samsung Electronics Co., Ltd. (KSE: 005930.KS) use software
developed by Carrier IQ, Inc. ("CIQ") that illegally intercepts
incoming text messages and captures users' key strokes—including
those used to compose email and text messages or to dial
numbers—without consumers' knowledge or permission.
In mid-November, software developer Trevor Eckhart published a video blog
illustrating the operation of the CIQ software recording
keystrokes, including information sent to secure websites using
HTTPS security protocols used in e-commerce and other
security-sensitive sites.
After Eckhart published his discovery and documents he found on
CIQ's website, CIQ accused him of copyright violations and
threatened legal actions unless he capitulated to the company's
demands. The Electronic Frontier Foundation, a public-interest
digital rights watchdog stepped in to defend Eckhart and CIQ later
apologized to Eckhart and rescinded its demands.
According to CIQ, its software is embedded on smartphones to
allow the company to collect data for the benefit of cellular
carriers and device manufacturers, which is important to improving
customer experience, such as logging information related to dropped
calls. CIQ says its program does not log keystrokes or
intercept messages and it does not store or resell the
information.
The lawsuit alleges that, in reality, the program does record
keystrokes and the content of messages, and could transmit the
information to third parties, possibly including information sent
to secure websites using HTTPS security protocols used in
e-commerce and other security-sensitive sites such as
banking.
"Given our dependence on smartphones, we rely on the assumption
that our personal information is protected from third parties,"
said Steve W. Berman, the attorney
representing the plaintiffs. "Yet, it appears that Carrier IQ has
violated this trust. For example, Mr. Eckhart's video shows
CIQ software intercepting incoming text messages, and it also shows
that the software captures dialed numbers and sensitive information
sent through protected websites."
The complaint was filed yesterday on behalf of four smartphone
users and names smartphone manufacturers HTC and Samsung as
defendants along with CIQ. The lawsuit could be amended to include
other smartphone manufacturers that embed the CIQ software on their
devices.
"We believe that CIQ was intercepting and collecting private
information from smartphone users that they had no right to monitor
or record," Berman added. "Their actions, in concert with phone
manufacturers and the various carriers, should raise the hackles of
anyone concerned about privacy in the broadest terms."
The suit, filed in the U.S. District Court for the Northern
District of California, accuses
the companies of violating the Federal Wiretap Act and California's Unfair Business Practice Act. The
Federal Wiretap Act prohibits the unauthorized interception or
illegal use of electronic communications.
The lawsuit asks the court to award damages under the Federal
Wiretap Act, and prevent companies from including similar software
in future smartphones.
Hagens Berman is interested in
talking with smartphone users who used devices that run CIQ
software. The firm can be contacted by calling 206-623-7292. More
information is available at www.hbsslaw.com/ciq.
Media Contact: Mark Firmani |
206-443-9357
SOURCE Hagens Berman