BREAKING NEWS ~ BlackBerry saved by RIM patent settlement with NTP
Jeannie Shawl at 5:10 PM ET
[JURIST] CNN is reporting that Research in Motion [corporate website], maker of the BlackBerry [product website] wireless device, has reached a $612.5 million settlement in its patent dispute with NTP Inc. In 2003, the US District Court for the Eastern District of Virginia ruled [PDF text] that RIM violated a patent held by NTP, Inc. and that decision was upheld [PDF opinion; JURIST report] on appeal. The US Supreme Court said in January that it would not consider the case [JURIST report].
According to RIM, NTP has granted it the right to continue operating the BlackBerry service and NTP will not pursue its claim for damages against RIM. Last March, the two companies reached a $450 million settlement, but the agreement was never finalized and Spencer eventually ruled the settlement invalid [JURIST report]. CNN has more.
5:52 PM ET - According to the RIM statement:
Research In Motion Limited (RIM) (NASDAQ:RIMM; TSX: RIM) and NTP, Inc. (NTP) today announced that they have signed a definitive licensing and settlement agreement. All terms of the agreement have been finalized and the litigation against RIM has been dismissed by a court order this afternoon. The agreement eliminates the need for any further court proceedings or decisions relating to damages or injunctive relief.Read the full press release.
RIM has paid NTP $612.5 million in full and final settlement of all claims against RIM, as well as for a perpetual, fully-paid up license going forward. This amount includes money already escrowed by RIM to date.
The licensing and settlement agreement relates to all patents owned and controlled by NTP and covers all of RIM's products, services and technologies. NTP grants RIM an unfettered right to continue its business, including its BlackBerry® related business. The resolution permits RIM and its partners to sell RIM products and services completely free and clear of any claim by NTP, including any claims that NTP may have against wireless carriers, channel partners, suppliers or customers in relation to RIM products or services, (including BlackBerry Connect and Built-In technology), or in relation to third party products and services, to the extent they are used in connection with RIM products and services.
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