About BlackBerry It came in January 1999 Tool to communicate in the wireless age A small device fitting in palm having wireless phone, broadband internet, SMS, e-mail, multiple wireless network standards. Created by RIM Users- senior executive at companies and high-ranking government officials. By 2007 had 8 million users
Dilemma of case Infringing of NTP’s patents and requesting that they negotiate rights to license NTP’s technology
About Research In Motion Started in 1984, in Canada First customer GM Won Academy Award and an Emmy Award or technological innovation in motion picture First generation wireless device a two way pager that came out in 1996 In 2000 it had 16 patents but by 2007 it had more than 400 utility and design patents
About NTP Established in 1992, in Arlington, Virginia is a patent holding company by Thomas Campana and Donald Stout In 1980 Mr. Campana received around 50 patents o wireless pagers technology It had 20 inventors It sought royalties through licensing as it had no intention and capability to practice his patent invention
History Of Case In 2000 Sending of letter to different company including RIM regarding infringing on NTP’s patents and requesting and requesting that they negotiate rights to license NTP’s technology RIM ignored letter and that gave motion to legal process In 2001 NTP filed a complaint in US on Blackberry for infringing of eight patent rights of wireless electronic delivery of mail In 2002 annual report of RIM also it denied of infringement of NTP’s patents In second half of 2002 it went to jury and RIM also demonstrated prior art device and used in courtroom and now it owned $53 million at 5.7 % royalty rate and spend $4.7 million in legal fees
Cont. … In 2003 claim increased to $58 million at 8.55% royalty rate In 2005 Blackberry users increased to half a million In 2004 Thomas Campana died due to cancer In 2004 RIM filled for rehearing In 2005 settlement came to $450million RIM recorded that acquisition of license from NTP as an intangible asset valued at $20 million In 2005 Blackberry users increased to 3 million On September 11,2oo1 when cell phone and other devices failed, blackberry continued to operate this versatility and reliance helped in delay any shutdown that would prevent state and federal government workers from using the devise RIM announced that it will have to shutdown if court orders
Cont.. …. On 3rd march 2006 RIM and NTP announced final settlement at $612 million this included a perpetual, paid up license, as well as legal fees and damages RIM unfettered rights to continue all business RIM shares prices on next day opened at $27.05 per share, up almost 13% from its Friday close of $23.97, this represents about a $600 million increase in share market value for RIM.