BlackBerry maker Research in Motion (RIM) and patent holding company NTP Inc have settled their long-running patent infringement dispute for $612.5 million, easing fears that the wireless email service would be shutdown in the US.
The two companies announced on Friday that they had signed an agreement under which RIM has paid NTP $612.5 million in full and final settlement of all claims and for a perpetual, fully paid-up license. It also covers claims that NTP may have had against RIM’s partners or third party sellers and providers of RIM products and services.
Judge James Spencer of the US District Court for the Eastern District of Virginia has now dismissed the infringement action.
In a court hearing last week the Judge expressed his surprise that the case had not settled, and hinted that he would agree to NTP’s request to grant an injunction prohibiting the Canadian firm from US sales of the BlackBerry and any other products, software or services using the wireless technology in dispute.
"We are pleased to have reached an amicable settlement with RIM,” said Donald Stout, NTP’s co-founder. “We believe that the settlement is in the best interests of all parties, including the US Government and all other BlackBerry users in the US."
The US Justice Department had petitioned the Court, asking it to ensure that any injunction would not affect Government workers.
According to reports, RIM, which had vowed to fight on, was persuaded to settle because of the effect the dispute was having on sales of the handset.
“It was slowing down our business, we realised, as we wrapped up the quarter,'' RIM Co-CEO James Balsillie told Bloomberg.com. “This was the pragmatic thing to do.''
On Friday, the firm released lower than expected figures for subscriber account additions for the fourth quarter – in the range of 620,000–630,000 rather than the 700,000–750,000 range provided in December. RIM blamed the decrease largely on uncertainty surrounding the NTP litigation, which it said had caused more US corporate and retail customers than expected to defer BlackBerry purchase commitments.
A US Patent and Trademark Office (USPTO) re-examination of the patents involved in the dispute will continue despite the settlement. The USPTO has so far issued preliminary rejections in respect of all the patents, and final rejections in respect of two out of the three involved. The final determination of the re-examination process, which may take years to complete, will have no effect on the settlement.