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Article

Title: $612.5M magic number in RIM, NTP settlement

Author: Dano, Mike Article Type: Company
Source: RCR Wireless News, v25 n10 p1(2) Publication Date: Mar 6, 2006
  ISSN: 1533-0796
URL of Publication: http://www.rcrnews.com

Research In Motion (RIM) Ltd., the maker of BlackBerry, and NTP Inc., a patent-holding firm, ended a long legal battle by agreeing that RIM will make a one-time payment to NTP of $612.5 million. The amount is a little more than a settlement of $450 million announced by the firms in 2005, which did not go through. While NTP has had victories in a series of legal cases, RIM received positive treatment from the United States Patent and Trademark Office. This agency rejected several patents from NTP that were at the center of the case involving RIM. RIM also reported that it had a 'work-around' technology that would not infringe on the NTP patents if it were implemented. Both of the companies, RIM's investors, and customers of BlackBerry were relieved that the long-running legal conflict was over. The settlement reached by the two firms covers all of RIM's products, services, technologies, and permits. The company stated that is has already obtained $450 million in savings for a potential settlement, while the remaining $162.5 million will come from its earnings revenues in the fourth quarter. The settlement is not likely to have much of an impact on RIM, which as about $1.8 billion in savings, but it does come at a crucial time for the company. It expects to report that net BlackBerry subscriber additions will total between 620,000 and 630,000 in the coming quarter. This is much lower than its previous expectations.

Companies:
Research In Motion Ltd (RIM)

Products:
BlackBerry

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