Blackberry maker settles long running dispute

Posted on 6 Mar 2006 at 10:15

Late on Friday, Research In Motion, the manufacturer of the Blackberry wireless PDA devices, announced that it has finally settled its long running dispute with NTP.

According to the terms of the settlement, RIM will give NTP a total of $612.5 million as a one off payment and in return receive a free hand to continue its business indefinitely.

Last month, the judge in the case told both parties to come to an agreement to settle the patent case which has dragged on since 1999. Now, as a result of the deal, all litigation relating to the case has been dismissed.

In return for the payment, NTP has granted RIM a 'perpetual, fully-paid up licence' to its patented technology. RIM and its partners are at liberty 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.

RIM had feared that the judge would order a shutdown of its US operations, which infringed the NTP patents. While RIM had prepared a workaround to prevent a total interruption in service to its three million US customers, each device would have needed a software update to operate legally.

Author: Steve Malone