MetroPCS and Virgin Mobile are currently in a court battle over the popular MetroFLASH CDMA handset unlocking service offered by the regional carrier.
Virgin initiallly filed legal motions after discovering that the MetroPCS MetroFLASH service was allowing Virgin Mobile customers the ability to take them to MetroPCS locations with MetroFLASH for use on their network. As Virgin Mobile heavily customizes and subsidizes handsets for use on its service, the carrier recovers handset subsidies through its customer base.
For its part, Virgin has demanded MetroPCS cease offering MetroFLASH due to its belief that it prevents the company from recovering subsidies on its handsets. MetroPCS has countered with its own claims disputing Virgin Mobile’s case, with one claim already dismissed by judge Sidney Fitzwater and stating that Virgin may have certain rights regarding its trademarks once the phone is flashed over to MetroPCS service as it involves violations of said trademarks.