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Article

Title: Facing Shutdown Threat, Maker Of BlackBerry Digs In for Battle

Author: Heinzl, Mark; Sharma, Amol Article Type: Product Analysis
Source: Wall Street Journal, v247 n45 pA1(2) Publication Date: Feb 24, 2006
  ISSN: 0193-2241
  Illustrations: Charts, Graphs
URL of Publication: http://www.wsj.com

RIM's BlackBerry, Palm's Treo, and Microsoft Windows Mobile are highlighted in a discussion of RIM's battle to continue operating in the midst of an intellectual property (IP) law suit. Late in 2005, small patent firm NTP, which is threatening to shut Research in Motion down, said it would end the dispute if RIM were to pay the company about $1 billion. Alto many expected RIM's chairman and co-chief executive, Jim Balsillie, to pay up, Mr. Basillie instead put the pressure on engineers to speed up development of new software that circumvents the patent claims made by NTP. Mr. Basillie also sought the support of customers, including wireless phone companies that sell the BlackBerry Service. Mr. Balsillie believes that standing up to NTP is a risk worth taking because NTP's patents are in the dumper, but not everyone is so confident, and many expect RIM to settle. Mr. Balsillies battle stance is fueled by righteous anger at the U.S. Patent Office (USPTO) and the determination to fight for a principle. Mr. Balsillie and many other high technology executives say U.S. patent laws allow parasitic little firms hold up innovative companies for ransom, unfairly playing Russian roulette with the system each day in the courts, where a single claim can shut down a whole industry. NTP has condemned RIM and the Canadian government over their lobbying in the U.S. capitol for fast action at the patent office, and RIM reported that there has been no improper influence on the patent office. If NTP is forced to appeal to federal courts, the process could be lengthy.

Special Features: Charts, Graphs

Companies:
Microsoft Corp Palm Inc
Research In Motion Ltd (RIM)

Products:
BlackBerry Microsoft Windows Mobile
Palm Treo

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