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March 3, 2006
RIM Off Hook
In
a measure of graciousness, NTP let RIM off the hook for patent infringement for only
$612.5 million, granting a perpetual license to NTP's patented wireless email
technology. The whispered figure for settlement had been closer to $1 billion.
RIM's graceless Jim Balsillie whined, "It's not a good feeling to write this
kind of check."
RIM acknowledged that its sales have been badly hurt by the uncertainty of an impending injunction against its Blackberry device, knocking $40 to $70 million off of sales revenue for the current quarter, which is now expected to be around $550 million, rather than the previous forecast range of $590m to $620m.
While a settlement was widely expected for the past year, RIM only settled after clear warning by presiding Judge Spencer that the jig was up for RIM's shenanigans, and an injunction was looming as imminent. The court has approved the settlement.
While RIM's stock price may not continue to be the roller coaster ride it has been since NTP sued in late 2001, RIM is expected to lose considerable market share within the next few years, as its battering from the NTP suit has helped open the door to growing competition that offers devices with more features and better service.
Posted by Patent Hawk at March 3, 2006 3:48 PM | Litigation