RIM Holding Patent 'Workaround' In Reserve

by Glen Shapiro, LawAndTax-News.com, New York

21 June 2005

Speaking to the technology media last week, maker of the BlackBerry wireless e-mail devices, Research In Motion, announced that a potential 'workaround' solution has been found in the company's patent battle with US-based patent holding firm, NTP.

It emerged earlier this month that the settlement agreement reached between RIM and NTP over patented technology crucial to the former's BlackBerry devices had collapsed.

NTP had argued successfully in several US courts that the function in the devices which automatically receives and displays new e-mail messages without any prompting from the end user represented an infringement of its intellectual property, leading the Canadian government to intervene in the matter on RIM's behalf.

Under the terms of the settlement reached between RIM and NTP in March of this year, the former firm agreed to pay the latter $450 million, in return for which it would be permitted to continue to market the devices without interference.

However, in a brief filed with the US Court of Appeals last week, NTP explained that:

"Unfortunately, it very quickly became evident that the parties had interpreted the vague term sheet in entirely different manners regarding virtually every significant provision."

Responding to the news, RIM called for the matter to be turned over to the District Courts in order that the settlement agreement be enforced.

However, speaking to CNET News on Thursday, RIM co-CEO, Jim Balsillie revealed that a solution has been found which could avoid the infringement of the patents in question.

"We've completed the workaround. We've tested it and we have a legal opinion on it. We have it as an option," he told the news service.

However, the RIM boss reportedly declined to give further details on the proposed innovation.

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