RIM to Settle with NTP for $612. Million
March 3rd, 2006
Research In Motion announced late Friday that it had reached a settlement with patent firm NTP to end a never-ending legal battle that threatened to shut down BlackBerry service in the United States. The out of court settlement, worth US$612 million to NTP, grants RIM the right to continue running its Blackberry push email service.
RIM has paid NTP $612.5 million in full and final settlement of all claims against RIM, as well as for a perpetual, fully-paid up license going forward. This amount includes money already escrowed by RIM to date.
The licensing and settlement agreement relates to all patents owned and controlled by NTP and covers all of RIM’s products, services and technologies. NTP grants RIM an unfettered right to continue its business, including its BlackBerry related business. The resolution permits RIM and its partners to sell RIM products and services completely free and clear of any claim by NTP, including any claims that NTP may have against wireless carriers, channel partners, suppliers or customers in relation to RIM products or services, (including BlackBerry Connect and Built-In technology), or in relation to third party products and services, to the extent they are used in connection with RIM products and services.
In deciding not to enforce an injunction that would halt BlackBerry service last Friday, U.S. District Judge James Spencer chastised the two sides for not making more effort to settle the matter out of court. Spencer said he hoped to have a decision on the injunction “as soon as reasonably possible.”
