RIM Hit Hard In Ruling In The NTP Case

[Ed Hansberry]

<a href="http://www.forbes.com/markets/2005/11/30/rim-blackberry-balsillie-cx_de_1130autofacescan07.html">http://www.forbes.com/markets/2005/11/30/rim-blackberry-balsillie-cx_de_1130autofacescan07.html</a><br /><br /><i>"Hold on to your BlackBerries. Wireless email giant Research In Motion has taken a big hit in its long running legal dispute with NTP, and now faces the prospect of paying more than a billion dollars to get itself out of trouble...On Wednesday, Judge James Spencer of the U.S. District Court for the Eastern District of Virginia refused to delay the proceedings any further, or to hold the companies to their previous settlement. The decision means that RIM might have to pay out big bucks to settle the case. If they don't, Spencer could enforce an injunction banning BlackBerry sales in the US. That would cripple RIM's business, cutting it off from the market that provides 70% of its sales."</i><br /><br />If nothing else, corporate IT department looking at wireless mobile solutions have to be avoiding Blackberries right now with them having such an uncertain future. It looks like Wall Street is taking a cautious approach to the stock. Trading was halted waiting the ruling today and when trading resumed, it was down over 6%. Now is the time Microsoft should be in high gear pushing the long awaited MSFP for WM5 devices out to OEMs and in turn to end users showing it has a solid worry free solution.

[dazz]

I don't really think anyone needs to panic about RIM. They have something like 400 million already put aside for NTP when they are all done with the legal rangling. Plus, if they need more I don't think they'll have a hard time getting it.

Still, I agree that this is a good time for MS to shine. It's too bad the OEMs are not going to be ready for a few more months with the WM5 update to allow real push.

[wshwe]

The wireless carriers and device manufacturers will find a ways to screw up and endlessly delay the rollout of MSFP. RIM has nothing to worry about.

[dazz]

BTW, I don't know all the details of the injunction but I am sure if it goes ahead it will be that RIM can't sell any new items, not that the service itself will be shut down. There are too many people that rely on these for vital communications and I don't think any judge would be that brutal. They would get a HUGE backlash from MANY users, especially those in the US Government. ;)

[Storkman]

Good morning...

Considering this ruling would only affect them in the US (admittedly a major market for them, but not their only market) and that other companies are licensing their technology outside the US (Nokia was the latest one to get on the blackberry bandwagon) the effect of this ruling is not obvious.

Also, consider the US patent office has indicated that NTP may not actually own the patents in question!!! But their decision won't come out for a bit. So blackberry may just suspend new sales in the US until the patent decision, then if the patents aren't NTP's they could sue to get their money back!!!

This party is still going strong!!!

[wirelessbeachbum]

If their is an injunction in the US, it won't phase RIM a bit, they already have a software patch ready to go that will bypass the NTP issues...my question is why don't they just go ahead and put that patch in place now and move on?

My only thought is that it may change the way the Blackberry device performs?

[dazz]

Most likely, if they perform the patch now it will become part of the current proceedings and will also look like they are admitting guilt.

[CoreyJF]

I would be shocked if the government allowed RIM to be shut down in the states. Way to many Government employees depend on the Crack Berries

[Stik]

Also, consider the US patent office has indicated that NTP may not actually own the patents in question!!! But their decision won't come out for a bit.

You sitting in on this case?! :lol:

" Research In Motion Ltd., the maker of BlackBerry e-mail pagers, won a ruling from the U.S. Patent and Trademark Office that one of the patents at the center of the company's dispute with NTP Inc. is invalid. "

" The patent office issued what it called a ``non-final action'' yesterday saying one of five patents owned by NTP involved in the case is invalid. The agency is still reviewing another patent found to be infringed by Research In Motion. "

" A final decision on the patents could be years off, said NTP lawyer James Wallace. "

http://www.bloomberg.com/apps/news?pid=10000082&amp;sid=apnuTStn.Nqg&amp;refer=canada


" Yesterday, Spencer also rejected as ``unenforceable'' a draft agreement between the two companies in which Research In Motion would pay NTP $450 million. Each side blames the other for the breakdown in the agreement. "

http://www.gbtlaw.com/images/image_cartoon_sml.jpg

[bdegroodt]

I would be shocked if the government allowed RIM to be shut down in the states. Way to many Government employees depend on the Crack Berries
Indeed, they do (http://www.signonsandiego.com/uniontrib/20040606/news_1c6blackberr.html)

[wirelessbeachbum]

I would be shocked if the government allowed RIM to be shut down in the states. Way to many Government employees depend on the Crack Berries
Indeed, they do (http://www.signonsandiego.com/uniontrib/20040606/news_1c6blackberr.html)

NTP said they wouldn't enforce the injunction on any Blackberrys in use by government agencies, however, it would be up to the wireless providers to figure that piece out, as well as selective enforcement may not be under NTP's control, my guess that would be up to the courts to decide.

[CoreyJF]

Selective prosecution is very dicey. Living in DC and watching millions lobbyist, lawyers, beltway insiders who depend on blackberries, I just don’t see it happening on at all.