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RIM Wins "Unfettered Right" To Continue the BlackBerry Success Story, Pays NTP $450M

The $450M Amount Relates Primarily to Settlement of Past Damages
By BlackBerry News Desk
Article Rating:
March 17, 2005 12:00 AM EST
Reads:
 18,735
RIM and its customers yesterday won the "unfettered right" to continue in the BlackBerry-related wireless business when RIM and NTP, Inc. signed a binding term sheet that resolves all current litigation between them.

RIM agreed to pay to NTP US$450 million in final and full settlement of all claims to date against RIM, as well as for a perpetual, fully-paid up license going forward. As part of the resolution, said RIM in a statement, "NTP will grant RIM and its customers an unfettered right to continue its BlackBerry-related wireless business without further interference from NTP or its patents."

NTP and RIM will be finalizing the terms of this resolution in a definitive licensing and settlement agreement in upcoming weeks.

The $450M amount relates primarily to settlement of past damages, and includes the judgment and money escrowed to date totalling US$137 million (the US$152 million previously accrued included approximately US$15 million in other litigation related fees). It is expected that a substantial portion of the US$313 million, which is the balance of the settlement amount, will be expensed in the fourth quarter, ended February 26, 2005.

This resolution relates to all NTP patents involved in the current litigation as well as all current and future NTP patents. The resolution covers all of RIM's past and future products, services and technologies and also covers all customers and providers of RIM products and services, including wireless carriers, distributors, suppliers and ISV partners.

Under the terms of the resolution, RIM will have the right to grant sublicenses under the NTP patents to anyone for products or services that interface, interact or combine with RIM's products, services or infrastructure. The resolution permits RIM and its partners to sell its products, services and infrastructure completely free and clear of any claim by NTP, including any claims that NTP may have against wireless carriers, ISV partners or against third party products that use RIM's BlackBerry Connect / BlackBerry Built-In technology.

The RIM statement concluded: "Further comment and details will not be disclosed at this time. Additional details will be provided on RIM's Q4 results conference call scheduled for April 5, 2005, pending the completion of the definitive licensing and settlement agreement."

 

Published March 17, 2005 – Reads 18,735
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SYS-CON's BlackBerry News Desk brings the very latest news, views, research and industry developments relating to the increasingly complex data-rich mobile applications made possible by the BlackBerry platform from Research In Motion.

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Most Recent Comments
lifelover552000 03/17/05 05:14:33 AM EST

The deal is very good for RIM because it gives indefinite blanket patent protection not only for RIM but all of its current and future customers. By any measure, buying RIM's system will probably be far less expensive than doing a licensing deal with NTP. In short, the world will be beating a path to RIM's door to get in the game.
yhoo8650 03/17/05 05:11:15 AM EST

Was this really a great deal for RIM? Or did it just allow them to stay in business? With other players getting into the fray (like MSFT) and with the ability to license the same technology?
doubtful butt 03/17/05 05:10:04 AM EST

Why doesn't NTP want a royalty from RIM, but a lump sum? Maybe they don't trust in the future of RIM...
aramand2001 03/17/05 05:08:42 AM EST

Now other NTP licensees like Nokia and GOOD are both at a serious disadvantage on per-unit costs compared to RIM... especially GOOD, since anybody who licenses from GOOD still has to pay NTP unlike anybody who licenses from RIM (free and clear right to sublicense)