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RIM Settles Long-Standing Blackberry Claim

David Jao writes "Research in Motion has agreed to pay 612.5 million dollars for a 'full and final settlement of all claims' resulting from the NTP patent lawsuit against the makers of BlackBerry. According to the article, the settlement is 'on the low end of expectations', perhaps because the patents in question had earlier been preliminarily ruled invalid by the US Patents & Trademarks Office." Many article submitters characterize this move as 'giving in' to NTP's tactics. What do you think?

20 of 295 comments (clear)

  1. I'm confused... by chill · · Score: 4, Insightful

    ...if the patents that based NTP's lawsuit were going to be ruled invalid, what was the basis for the settlement? Why didn't RIM just tell NTP to go fuck themselves and wait for the patent office to finish. No patent == no patent infringement == no lawsuit.

    --
    Learning HOW to think is more important than learning WHAT to think.
    1. Re:I'm confused... by jarich · · Score: 4, Insightful
      I suspect that they were bleeding customers like crazy from all the bad publicity and the near shutdowns. I can't imagine how much stress their bean counters were under! ;)

      Also, do you really know that the patents were invalid? I haven't looked at it that closely.

    2. Re:I'm confused... by cyngus · · Score: 5, Insightful

      Simple. The uncertainty surrounding RIM was hurting their business and was going to continue to. By resolving the dispute sooner they keep many customers they might have lost and have a better chance of attracting more. NTP could have kept this dragging through the courts for years and possibly sunk RIM in the process. Gotta love corporate shakedowns.

    3. Re:I'm confused... by GoMMiX · · Score: 4, Insightful

      Ahhh, but people thought this case had something to it. They had patents. SCO on the otherhand has nothing, and even they know it.

      Lets not forget IBM was not losing business at all as a result of SCO's suit against them. SCO's suit against IBM has actually been positive publicity for IBM - that much has been apparent since the day it was filed.

      The blackberry, on the otherhand, had a lot of people very concerned given the validity the courts gave to the claims (IE: they already won once).

  2. 612.5 million?! by BewireNomali · · Score: 5, Insightful

    Low end of expectations? Wow. This justifies patent squatting to the unscrupulous looking for the cash-out.

    --
    un burrito me trampeó.
    1. Re:612.5 million?! by faedle · · Score: 4, Insightful

      Yep. And it all started when RIM very loudly and publically stated that they would sue others based on their patent claims.

      RIM got exactly what they deserved.

    2. Re:612.5 million?! by augustz · · Score: 4, Interesting

      Hey Faedle,

      Someone else who has followed this case from the beginning :) Yep, the patent system is messed up, and some of us remember a lot of RIM claims to litigate others out the market with a similar sets of bogus patents (not even the small keyboard ones).

      I think their early IP talk actually popped them up on NTP's radar initially, they were making a lot of noise about it.

      They got exactly what they deserved, but the system could still use a fixing, badly.

  3. Disappointed by OzPhIsH · · Score: 4, Insightful

    I'm pretty disappointed with this move by RIM. I was hoping that by going all the way through the courts we might get some serious patent reform out of the whole mess. While this brought a lot of attention to the issue, I fear that it will just go back to being business as usual at the patent office.

    --

    "To lead the people, you must walk behind them"

    1. Re:Disappointed by harlows_monkeys · · Score: 4, Interesting
      I'm pretty disappointed with this move by RIM. I was hoping that by going all the way through the courts we might get some serious patent reform out of the whole mess

      This might not have been a good case for prompting patent reform. I haven't read the patents myself, but from the discussion on the TWiT podcast, they were saying that the patents actually looked pretty legitimate, and were only likely to be overturned because of the immense pressure the government was putting on to keep their Blackberries going.

      In other words, it's not clear that NTP is that bad guy here, and the RIM is the good guy.

  4. No other choice... by avalys · · Score: 4, Insightful

    They had no other choice but to give in. There was an article in the WSJ today that talked about how many people were switching to competitor's products, just because of the uncertainty surrounding the Blackberry.

    It will be interesting to see how easily they recover from this.

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    This space intentionally left blank.
  5. Re:Who gave up? Not RIM, that's for sure! by HoneyBunchesOfGoats · · Score: 4, Insightful

    So if someone tries to blackmail me for $100 and I talk them down to $50, I didn't give in either?

    That's some faulty logic right there.

  6. All this proves is we need to fix the USPTO by morganew · · Score: 4, Interesting

    The industry and millions of consumers are breathing a collective sigh of relief tonight.

    Despite averting a BlackBerry shutdown, however, this case is just more proof that the US Patent Office is in crisis. While some of NTP's patents may prove to be valid, it is clear that many of them should never have been granted in the first place.

    The US Patent Office's failure to ensure quality threatens the patent system that is so critical to innovative small tech firms. If the quality of patents is not improved, the industry may lose faith in the entire system.

    Some may not like software patents, but the reality is that companies have them. Open Source Champion IBM is the single largest patenter in the WORLD. they still make billions (with a b) off of patent licensing - including software/method patent licensing. Small companies like 'slingbox' have patents to ensure that they get VC funding and to prevent Sony from just creating the exact same product and steamrolling them.

    I, along with Diane Peters from OSDL, Bruce Perens, lawyers from IBM and others got together at the USPTO last month to talk about ways to improve patent quality. No solutions yet, but some good discussion.

    The quality issue MUST be solved, and NOW; so before you launch into a general "patents suck" rage, take a reality check and think about ways to get more prior art into the patent system and improve the quality.

    It will be several years before patent reform legislation becomes law, so we are going to to have to find technology solutions that we can implement now, and hope that legislation fixes the things we can't.

    Morgan Reed

    --
    A sig?!? I don't think so.....
  7. Magic money for nothing by coljac · · Score: 4, Interesting
    Despite RIM's unethical courtroom tactics (which backfired spectacularly), I can't help but be very disappointed by this decision. SIX HUNDRED MILLION dollars - a staggering sum - to be paid to these guys, for what? No hard work, no product, no contribution to science and technology. It's extortion, and I don't even understand the leverage they used given their patents are invalid. If I was the CEO of RIM (ignoring the realities of fiduciary duties to shareholders) I would rather go bankrupt than let the patent trolls become wealthy from my hard work.

    The one good thing to come of this is it has raised the problem in the public eye. Congressmen thought they would lose their Blackberries. Let's hope some real reform is on the way.

    --
    Everyone knows that damage is done to the soul by bad motion pictures. -Pope Pius XI
  8. The only thing worse than a patent troll... by Trailer+Trash · · Score: 4, Insightful

    is a patent troll with $600M in the bank.

  9. Not having a product doesn't mean anything by PCM2 · · Score: 5, Insightful

    I'm not in favor of NTP or anything, but the people who point out that NTP had no product are missing the point of patents.

    Suppose you invented the Blackberry. You. Right now. You have the idea. Now what? Do you have the financial backing to manufacture a million Blackberrys? Do you have the industry connections to go around and make deals with all the mobile carriers to get your service into people's hands? No. But it's still a good idea, so you want to go forward with it. That means finding potential partners and investors. But just talking to those people about it is spreading the idea around. Suppose you go to the mobile company and say, "I have these plans for this service, I'm going to call it Blackberry." What's stopping them from just making the service themselves and cutting you out of the picture completely?

    Your patent is.

    In an ideal world, that's what patents are for: protecting the little guy inventor from big business.

    --
    Breakfast served all day!
    1. Re:Not having a product doesn't mean anything by DShard · · Score: 4, Insightful

      Which is utter bunk. NTP came in after the fact, well after precedent and patented obviousness. These people had no product other than litigation. Their business plan was to sue successful companies.
          Now let's assume that you are the little guy. You come up with something utterly missing in the market. Let's call it middle management crack. So you patent it, build a company on it and become the "next big thing".
          During that time, a different company, comes in who doesn't actually make anything new or produce any products. What they do is buy "analysts" to come up with how your design is "not patented". Next they produce legalease to sue you for your unique business model. At no point have they ever had _one_ customer and now they sue you.

      This is what happened in this case. In an ideal world, people can not use the justice system to extort money from you.

  10. Why are they patent trolls? by lmlloyd · · Score: 4, Informative

    I love how the big company always gets the benefit of the doubt in today's corporate-loving world.

    The founder of NTP had many years of wireless experience, and developed many technologies that moved wireless messaging forward. When RIM showed up on the scene, he sent them (as well as some other companies) a few letters to inform them that they were infringing on his patents. RIM ignored the letters, and continued doing business as though they had never heard of this guy. He didn't sue, he just chalked it up to a losing battle that there was nothing he could do anything about.

    Then he saw a story about how RIM was suing other companies out of existence using patents that were infringing on HIS patents. At that point he figured it was time to try and get a big law firm involved, and went after RIM. He died of cancer before this whole court case was ever finished, but I am glad to hear his family will be well off.

    The fact of the matter is, this never would have even happened if RIM hadn't started the whole thing by employing predatory practices with their dubious patents to drive competition out of business in the first place. I have no sympathy for RIM at all. They flat out lied in court, and were busted for it, they used some pretty questionable lobbying practices to get NTP patents invalidated, and they have practiced far more dubious patent extortion than NTP ever did. I don't think this is a case of a fine, upstanding company getting a shakedown by a troll. This is a case of pretty sweet karma in action!

  11. Back to Business as Usual by tekrat · · Score: 4, Insightful

    This didn't solve anything. If anything it made things worse. I didn't see *ANY* reporting that the flawed patent system was at fault.

    All I heard from the mainstream news media was the Blackberry was being sued, and now they settled for $600 Million, so, in my mind, they must have been at fault.

    Furthermore, this payment will embolden other patent trolls who want to be fed to the tune of millions for doing nothing.

    And the Patent System will go merrily on it way, because now that Senators can use their Blackberries again, do you think they are going to give a tinker's damn that the system is flawed?

    If I'd been running Blackberry, I'd have shut down service for 24 hours, with the message "we can't provide service due to a flawed patent system.".

    Does anybody here remember the day everyone made their webpages BLACK as a protest? Does anybody remember when it was OKAY to fight back against something that was wrong? Now it seems, the M.O. is to give up, pay the bastards and lick your wounds, regardless of who's right or wrong.

    In fact, the more wrong you are, the harder you should fight, it seems, because these days, the good guy always loses. (RIAA anyone?)

    What a wonderful lesson to teach our younger people.
    George Lucas should make a movie on that subject.

    So this is how freedom dies. With a $600 Million payout.

    TTYL
    A disgusted and concerned old-timer.

    --
    If telephones are outlawed, then only outlaws will have telephones.
  12. RIM is a not a hero, fellas by feijai · · Score: 5, Insightful
    RIM:
    1. Worked so hard to run its competitors out of the market with lawsuits that The Register nicknamed it "Lawsuits in Motion"
    2. Ignored all entreaties from NTP for a year, forcing NTP to eventually sue them.
    3. Lied in court so often that they received three-times punative damages just for their court conduct alone, plus attorneys' fees.
    4. Gave Congress free Blackberries as a tactic to get them hooked, then
    5. (Successfully) Lobbied Congressmen to put big-time pressure on the USPTO to invalidate NTP's patents while the court case was ongoing (can you say "cut off their air supply"?), regardless of their actual validity. In the US, if you're doing something illegal, you can always get the law changed if you have enough money. Even if you're a foreign company.
    6. Tried to push through a congressional resolution that shutting down the Blackberry network would be a "threat to national security" because of the free Blackberries they'd hooked the feds on.
    7. (Successfully) Lobbied the Canadian government to weigh in as if this were a matter of international concern.
    8. Purposely delayed resolution until after NTP's original inventor died.

    This company deserves to go straight to hell. $612 million is a rap on the knuckles.

  13. NTP did have products! by waldo2020 · · Score: 5, Informative

    Actually, Campana's company Telefind did have working products, albeit prototypes, exhibited at Comdex in 1990. There weren't terrible reliable - as the networks weren't either, only one way email to pagers but they worked. AT&T was online as primary customer but ducked out leaving Telefind high and dry. Campana inherited tha patents after a lawsuit against Telefind."Mr. Narayanan liked Telefind's products, thinking they might fit well with the Safari project. AT&T had an e-mail system and a prototype computer; what it lacked was a paging service that could put the two together. But after a year of flirting with Telefind, even demonstrating Telefind's system at the Comdex computer show in Las Vegas, AT&T opted for a larger partner in Skytel." RIM's 800 and 900 series pagers were released in 1990 - well after Telefind. Mind you they were true 2-way pagers operating on Motorola's wireless packet Mobitel network. What brought on the NTP lawsuit was RIM's own arrogance in suing othe companies like Palm for having the audacity to incorporate tiny keyboards in their products. C'mon RIM! Who's the troll now?