Carrier IQ Settles Consumer Privacy Lawsuit

US-based mobile phone intelligence firm Carrier IQ has agreed to settle a lawsuit which alleged consumer privacy violations by its tracking software, used by carriers and phone manufactures to collect network data. Terms of the settlement have not yet been disclosed.

Founded in 2005, Carrier IQ provides software which sits on millions of mobile handsets worldwide, collecting real-time data on phone usage and performance, to enable mobile network operators and handset manufacturers to adapt their services and products. This includes information on usage of voice and data services, music players, cameras and apps.

In 2011, the company settled a dispute with security researcher Trevor Eckhart, who had claimed in a blog article that its software gained access to computing devices without being seen, and enabled phone providers to monitor their customers' actions without their knowledge. In response, the firm demanded Eckhart remove his article and replace it with a retraction and apology written by the company, but Eckhart then involved the Electronic Frontier Foundation (EFF), and Carrier IQ withdrew its demands with an apology.

Following the Eckhart case, other consumers filed lawsuits against Carrier IQ, and against six device manufactures - HTC, Samsung, Huawei Devices USA, LG Electronics MobileComm, Motorola Mobility and Pantech Wireless. The cases - which were combined and brought in front of US District Court Judge Edward Chen in San Francisco - claimed the six companies had installed Carrier IQ's software on the plaintiffs' phones to collect data from SMS text messages, Internet search terms, user names and passwords without their knowledge.

While the device manufacturers have yet to agree to settle the lawsuit, Carrier IQ's lawyers at Fenwick & West filed a joint notice of settlement on Monday.