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  BlackBerryToday > News > RIM Killing Patent Infringement Settlement

RIM Killing Patent Infringement Settlement

By James Alan Miller
June 21, 2005

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A couple of weeks ago we reported on how Research In Motion's (RIM) $450 million settlement with NTP Inc. was in danger of collapsing. The BlackBerrry and push e-mail vendor accused NTP of refusing to honor its obligations to the agreement, which purportedly brought NTP's four year old patent infringement lawsuit against RIM to an end.

RIM filed a Motion to Stay Appeal and Remand for Enforcement of Settlement Agreement. In response, NTP filed a court brief defending its position.

The Internet rumor mill says there's more to the recent impasse in the RIM/NTP settlement than meets the eye.

Shortly after the companies announced their settlement, the U.S. Patent & Trademark Office ruled invalid a few of the patents NTP holds that related to the case. NTP's position suddenly became much weaker than it had been before the now tenuous settlement with RIM.

Purportedly, RIM is working on enabling BlackBerries to perform their e-mail functions without treading on NTP's patents. According to rumors, industry insiders assert RIM is, in fact, actually looking for a way to avoid paying the patent holding company altogether: No doubt due to the U.S. Patent & Trademark Office rulings.

The Canadian mobile device vendor received more good news this week when U.S. Patent and Trademark Office rendered null and void yet another NTP patent, the fifth in a row. That leaves only three patents left in its legal tussle with RIM.

Should those patents meet the same fate as the previous five, it would effectively kill NTP's chances of winning its case. NTP may appeal the rulings that rejected its patents, of course.

Failure could mean the complete overturning of NTP's patents altogether.

History
NTP originally sued RIM in 2001, claiming its wireless e-mail service infringed on eight NTP patents relating to an "electronic mail system with RF communications to mobile processors."

RIM lost a 2002 jury trial, and last August, a U.S. court found that RIM had infringed on five NTP patents and ordered it to pay $53 million in damages. The ruling barred RIM from selling BlackBerry devices in the United States until NTP's patents expire in May 20, 2012, but that injunction was stayed.

The BlackBerry vendor appealed that decision and in the June Virginia ruling, a jury found direct, induced and contributory infringement by RIM on all of NTP's claims. Based on a royalty rate of 5.7 percent, the jury awarded NTP approximately $23 million in damages.

Then in December 2004, a federal appeals court ruled RIM infringed on the NTP patents, but still sent the case back to a Virginia district court for further review of damages.

Upon which, the settlement was announced, NTP's patents rejected, and RIM accused NTP of not adhering to the spirit of their agreement.



Related Links:

  • RIM Patent Settlement in Danger
  • BlackBerry Demand Accelerates
  • RIM's BlackBerry Cleared For U.S. Markets
  • Court Rules RIM Infringed
  • Appeals Court Hears RIM Patent Infringement Case

     
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