Search Results for: NTP

BlackBerry maker, Research in Motion, was dealt another setback in the NTP vs…………….. RIM patent infringement case. U.S. Appeals Court Judge James Spencer denied RIM’s request to delay the case and to enforce a $450 million settlement initially agreed to by NTP but later fell apart when the two sides couldn’t agree on terms and royalties.

Judge Spencer said, “Valid patents would be rendered meaningless if an infringing party were allowed to circumvent the patents’ enforcement by incessantly delaying and prolonging court proceedings, which have already resulted in a finding of infringement.” He also said that he will request briefs and set a hearing date to deal with damages and impose an injunction against the sale of BlackBerry service and devices in the United States.

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I have a question about if RIM and NTP were to settle over the patent infringement case where the BlackBerry maker was found guilty on five counts of patent infringement.

It looks very likely that RIM will settle with NTP because U.S. District Court Judge James Spencer has become increasingly impatient with both RIM and NTP and doesn’t plan on waiting on the U.S. Patents Office to chime in with it’s final ruling on the validity of the patents in the first place. Remember, the U.S. Patents office rejected all eight of NTP’s patents so now there is a somewhat lengthy appeals process that both NTP and RIM have to go through. If judge Spencer doesn’t wait on those proceedings to complete and rules on the evidence before him, he may tell RIM to settle with NTP or face and injunction.

My question is if RIM settles with NTP and pays them anywhere from $450 million to $1 billion dollars to make this problem go away, what happens if a few months down the road the U.S. Patents Office upholds its finding that NTP’s patents are invalid? If I were NTP, I would definitely try to make sure that any agreement reached would not be contingent on any rulings from the Patents Office. I don’t know if that is legal but I definitely go that route if it were. It seems to me that RIM may have to shell out a boat load of money for a settlement over patents that don’t actually exist. (Correction, we did say $450 million to $1 billion… This is more like a super oil tanker load of money)

If this turns out to be the case, it would really suck for RIM investors.

If you have read any news about BlackBerry marker Reserach in Motion in the last two days, chances are that it had something to do with the NTP Patent infringement case or RIM’s stock (RIMM) tanking more than 5% yesterday before trading was haulted because of perceived bad news about the NTP patent suite.

The timing of all this litigation news couldn’t come at a worse time for RIM in my opinion because Microsoft is entering the mobile email space, and like every other space the enter in to, they plan to dominate it. I have already heard a MS rep pitch Windows Mobile 5 over BlackBerry because of the uncertainty factor with all the NTP vs. RIM litigation.

Mircrosoft has a very long way to go to make in dent in RIM’s market share, however, one that thing that we are certain of is that they are in this game for the long haul. Even though RIM is much further along with BlackBerry, there is uncertainty around where RIM will be in two years. Since the Internet Bubble bust, IT managers try to avoid uncertainty like the plague.

There is an old saying that IT managers don’t get fired over buying Microsoft, and when are faced with a decision to roll out BlackBerry devices that you aren’t certain about where they will be in the future, or go with Microsoft, the Redmond based software giant doesn’t look too bad.

Last week the U. S. Federal Court of appeals denied a request from BlackBerry maker Research in Motion to rehear its appeal of the NTP Patent infringement case in front of the full 12 judge court. Many of the BlackBerry news articles that I have read since then have made it seem like it is the end of the road for RIM and that an injunction prohibiting the sale of BlackBerry devices and service in the United States is imminent. I have to admit that I completely disagree.

First, all the court did was deny a rehearing of the case in front of the full 12 judge court as compared to a 3 judge panel which initially heard the appeal and upheld the guilty ruling. It is very uncommon for the full court to reconsider a panel’s decision. It’s not unheard of, it’s just hardly ever done.

Second, the U. S. Patent office has rejected all 8 of NTP’s patent claims, 5 of which RIM was found guilty of infringement on. Now, I am no lawyer, nor do I play one on TV, however, it seems to me that if NTP sued RIM based on patents that the U. S. Patent office says are invalid, that that is really bad news for NTP.

Third, reports are saying that with the news of the rejection, NTP is now going to ask for an injunction against the sale of BlackBerry devices and service in the U. S. If memory serves me right, NTP as already filed for that injunction and it was stayed until all this litigation gets figured out. It just wouldn’t make sense for the court to enforce that injunction now when it looks like NTP will have to appeal the the U. S. Patent Office’s decision to deny its patents.

From what I can tell, RIM is sitting pretty right now and NTP is the company that is on the hot seat.

A U. S. Federal Court today denied Research in Motion’s request for the full court to rehear its appeal of the NTP patent infringement case in which RIM was found guilty on 5 counts.

The U.S. Court of Appeals for the Federal Circuit in Washington today denied the company’s request for a rehearing before the entire 12-judge court. A three-judge panel in August upheld a jury finding of infringement. Such panels almost always decide patent cases on appeal, and it’s unusual for a full court to reconsider a panel’s decision.

RIM stock fell sharply to $3.84 to $63.13 before trading was halted at 11:15 a.m. on what ThinkEquity Partners analyst Pablo Perez calls “terrible news for RIM.” NTP is pushing for an injunction to stop all sales of BlackBerry devices and services in the United States.

There could be an injunction that stops all sales in the U.S. It’s not a guarantee that NTP will get the injunction, but it is now much stronger.

More than two thirds of Research in Motion’s sales come from the United States alone and such an injucntion could devistate the company. RIM has been working on a workaround solution that would run on existing BlackBerry phones and pagers that would not infringe on any of the patents in question.

With the Research in Motion Q2 earnings call and the thought of new devices taking the forefront in the BlackBerry news world, we didn’t notice that on the 28th of September, the U. S. Patent and Trade Office rejected the last of eight patents issued to NTP, the Virginia based holding company that has been entrenched in legal battles with RIM for years.

I don’t normally report how Research in Motion does in the market each day but I am definately interested in seeing how RIM fairs today, after a 9% dip yesterday. 5 of the now 8 patents overturned built the foundation for the patent infringement rulings in NTP’s favor against RIM.

In a 106-page ruling written by three senior examiners, the Patent Office cited two main reasons for its rejection. First, it cited a patent filed by RIM co-founder and CEO Mike Lazaridis in 1998 that predated NTP’s patent application from 1999. “That Patent Office is saying that it was not NTP that had invented this, but that it was RIM,” says RIM attorney Long. Second, it cited other work dating to 1986 and 1989 by Norwegian telecommunications concern Telenor, that predates the NTP patents.

With these patents being rejected, NTP will have to appeal the Patent Office’s rulings without making any changes to the claims. Making changes to the claims would give RIM grounds to argue for a new Trial. The last thing NTP wants to do have to retry the case. RIM has already filed a petition for the re-hearing of the case at the federal circuit court based on the rejections by the Patent Office of NTP’s patents. RIM has stated that they will take this battle all the way to the U. S. Supreme court if needed.

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Research in Motion rivals Seven Networks Inc. and Microsoft along with business partner Intel recently filed documents in the NTP vs. RIM patent case.

One of the key rulings against Research in Motion is that they infringe upon patents held by Delaware based holding company NTP even though RIM’s email system is managed from their operations center located in Canada. The ruling brings into question whether U.S. patents can be enforced in other countries.

Both Seven Networks and Intel side with Research in Motion arguing that U.S. patents should not apply in other countries. Microsoft argues the opposite stating that RIM’s position would encourage companies to locate certain aspects of their systems outside the United States to avoid infringement liability.

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Lawyers for Research in Motion have discovered 6 technical books that they hope will invalidate patent infringement claims made by NTP.  These books, published by Telenor, the largest provider of telecommunications services in Norway, describe a “wireless email system” similar to that which Research in Motion uses for it’s popular BlackBerry service.  The key here is that these books were published back in 1986, years before NTP filed for patents in 1991. 

The Telenor publications openly disclosed and described to the public the mobile e-mail system sought to be claimed years later in NTP patents. Indeed, the Telenor publications openly disclosed that e-mail system long before NTP claims that its system was even conceived.

This new evidence is another in a long line of blows to the NTP patent suite.  Since settling with Research in Motion back in March for $450 million,  7 of the 8 patents have since been overturned by the U.S. Patent Office.  RIM and NTP have also be fighting over the terms of the settlement agreement sparking additional lawsuites between the two companies. 

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According to Research in Motion Co-Chief Executive Officer Jim Balsillie, RIM has a “Workaround” in case the settlement with NTP falls apart. 

 “A workaround is a viable option,” Balsillie said in an interview yesterday. The alternative technology would run BlackBerry phones and pagers and is designed not to infringe on patents held by NTP.