US$612.5m Settlement Keeps Blackberry Buoyant
US$612.5m Settlement Keeps Blackberry Buoyant
March 6, 2006: The U.S. Blackberry service is safe now that Research in Motion (RIM) has settled the case brought against it by challenger NTP.
The two companies have released a statement detailing a US$612.5 million settlement and an ongoing license that will see the Blackberry service continue unimpeded, to the great relief of both RIM and the US Government.
"We are pleased to have reached an amicable settlement with RIM," says Donald Stout, co-founder of NTP. "We believe that the settlement is in the best interests of all parties, including the U.S. Government and all other BlackBerry users in the United States."
NTP was suing RIM for infringing nine of its wireless e-mail patents in 2001. The case intensified recently as NTP called for a potentially disasterous injunction on the Blackberry service, while RIM won some cruicial court decisions.
Having already gathered US$450 million for a settlement that was rejected by NTP in 2004, RIM only had to put up another US$162.5 million to secure the complete rights to its Blackberry service and a perpetual, fully paid license for the future.
“There was the fundamental reality that uncertainty isn't enjoyed," Balsillie said in a conference call following the settlement announcement.” says Jim Balsillie, chairman and co-CEO of RIM. “Once we could finally get a scope of license that protected our whole ecosystem, and a fixed amount that didn't have residual costs … it made sense to settle.”
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