Research in Motion denied Supreme Court hearing

By Steve Malone

Posted on 24 Jan 2006 at 10:37

Research In Motion has suffered another setback in its long running patent dispute. The US Supreme Court has refused to hear RIM's plea that US patent law was out of date as it did not properly take into account the international nature of modern business.

RIM contended that as it was a Canadian company with its infrastructure largely in Waterloo, Ontario, it could not be held to have infringed a US patent. However, the Supreme Court has now turned down the request for a hearing.

At issue is a dispute with NTP over a patent granted to the small technology company in 1993 covering the transmission of wireless email. After the BlackBerry launched in 1999, NTP sued RIM in 2001 for patent infringement. A US jury found in its favour, and NTP was awarded 5.7 percent of US BlackBerry sales. It is estimated that those stakes have now been raised to around $200 million.

The appeal to the Supreme Court was always going to be a long shot and now RIM is beginning to run out of options.

The case now returns to the lower court where there is a real possibility that the judge will order the company to cease operations in the United States unless it settles with NTP.

However, RIM is attempting to reassure shareholders that it will continue the fight through the courts and the US Patent Office while preparing software alternatives that will allow it to continue operations of BlackBerry services in the United States.