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  BlackBerryToday > News > RIM, NTP Speaking Through Mediator

RIM, NTP Speaking Through Mediator

By James Alan Miller
December 8, 2005

Contrary to previous reports, a number of sources say Research In Motion (RIM) is in talks to resolve its patent dispute with the NTP Group. RIM told Reuters and the Dow Jones News Service that it's been speaking with the Virginia-based patent holding company through a court appointed mediator for several days.

While that's good news for investors, initially sending RIM's stock up 2.7 percent, it contradicts NTP co-founder Don Stout, who claims the two companies haven't spoken since June—when an agreed upon $450 million settlement broke down. Should RIM and NTP come up with a new settlement, the dollar amount is expected to be far greater than that earlier figure, possibly a billion dollars or more.

That's because RIM is working under the dark cloud of an injunction, per NTP's request, against the Canadian vendor selling its products in the United States (70 percent of RIM's market). The judge in the case is considering whether to enforce the injunction right now.

In the meantime, analyst firm Gartner has advised companies to stop deploying RIM devices and e-mail solutions until the after RIM's patent woes are resolved. Because an injunction would cause American BlackBerry users to lose their messaging services and international RIM customers would experience the same when in the U.S.

Gartner says enterprises should "stop or delay all mission-critical BlackBerry deployments and investments in the platform until RIM's legal position is clarified."

RIM has batted around the idea of implementing a "workaround" should the court block it from selling its handhelds in this country. The idea has been met with some skepticism, however.

For its part, Gartner states the "workaround" solution could be "highly problematic." It adds, "RIM claims its work-around is legally sound, but its history in the courts does not inspire confidence. Moreover, end-user validation and implementation would take time, resulting in a temporary loss of service,"

All in all, Gartner expects a settlement between RIM and NTP could be reached in about three weeks.



Related Links:

  • Rare Win For RIM
  • RIM Suffers Another Setback
  • U.S. Shut Out Looming For RIM?
  • Patent Suit Against RIM Moves On
  • More NTP Patents Rejected, Helps RIM

     
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