US: Apple wants AT&T dragged into legal troubles

As plaintiffs continue to fight Apple for forcing consumers into wireless contracts with AT&T to obtain the first-generation iPhone, reports say the legal dispute is now mushrooming into a debate over whether both companies should be held accountable.

According to reports, Apple launched its argument at the US Court of Appeals for the Ninth Circuit that if it must face a lawsuit for its exclusive deal with AT&T, then AT&T should also be sued.

Reports say AT&T’s strict arbitration agreement is its main defense against being pulled into the case.

Experts say the Ninth Circuit’s decision sell set a crucial precedence for lawsuits against wireless carriers and phone makers that collaborate.

The case first began in 2007 when plaintiffs sued both Apple and AT&T for their partnership, making the iPhone available only to AT&T customers when it was first launched. Consumers accused the companies of exclusive tying and of striking a secret agreement that allowed Apple to share in AT&T’s profits, reports say. The suit also alleged that the software locking of the iPhone prevented customers from switching carriers with the device.

An earlier case, AT&T Mobility v. Concepcion, reached the Supreme Court, which upheld AT&T’s arbitration clause. That case forced a federal judge to reverse his earlier decision to deny the defendants’ motion to bar arbitration.

Just a few weeks later, the plaintiffs filed a new lawsuit without naming AT&T as a defendant.

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