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RIM Facing $147.2 Million Patent Verdict
An anonymous reader writes "Reuters reports that beleaguered wireless device maker Research In Motion is on the losing end of a patent suit that will cost them $147.2 million. The jury arrived at that number by assigning an $8 royalty for every BlackBerry connected to RIM's enterprise server software. Unsurprisingly, RIM intends to appeal the decision. 'Mformation sued RIM in 2008, bringing claims on a patent for a process that remotely manages a wireless device over a wireless network, a court filing says. According to its web site, Mformation helps corporations manage their smart phone inventory. The company also says it helps telecoms operators, such as AT&T and Sprint, with remote fixes and upgrades for users' gadgets. RIM argued that Mformation's patent claims are invalid because the processes were already being used when Mformation filed its patent application.'"
RIM's lawyers have asked if they can pay the penalty based on current usage. That would bring the verdict down to $72.
claims on a patent for a process that remotely manages a wireless device over a wireless network
How else are you going to manage a wireless device? If this isn't a ridiculous patent there is none.
The two main parts of this patent seem to be that it's over a wireless network and that it handles what we used to call "occasionally connected" devices. Since you can't assume the device will be turned on or available when you need to communicate with it you stage the data and send it when you do get a connection. We did that 20 years ago with dial-up devices. But I guess wireless connections are more special than dial-up.
They forgot to pay somebody. It reminds me of the old movie "Back to School" where Rodney Dangerfield is taking a business class and he starts filling the instructor in on all the payoffs and bribes necessary to conduct business in the "real" world.
RIM has $2b in cash and is doing well in some offbeat markets like Indonesia. They have problems but they aren't likely to go broke.
Shh... You're not supposed to contradict the popular consensus that RIM is $80B in debt, went bankrupt 6 months ago, and plans to sell half the company next week, and liquidate the rest by the end of the month.
I think you're also supposed to throw in some collection of jabs against whatever phone they sold 4-5 years ago that you didn't like, and how they're still selling it as part of their current portfolio and not working on anything newer.
I own a Blackberry phone, it's the easiest phone I can use SINGLE-HANDED and perform tasks that otherwise would require screen flipping using other smart phones. The Blackberry is not a tablet nor does it claim to be, it is a phone designed to be tough, functional and very reliable when you need it.
Here's a simple and old feature of my Blackberry, I can set an alarm for 7AM, turn off my phone completely, go to sleep, it will turn on at 7AM and sign the alarm. I cannot tell you how many times I've been in situations where I didn't have a battery charger and needed all the battery power I could get and needed to be awaken in the morning.
The shape of the Blackberry is very ergonomic, fits perfect in anyone's palm, I can do everything (short of typing a long message) single-handed, try doing that with those over-sized devices. The Blackberry one of the few devices left for true mobility.
Gross profits for the last year is $6.5b
That gives them EBITDA of $2.4b
after all the write downs they lost $50m
And btw those write downs include settlements on the employees they laid off. That's not great it is not however a company dying quickly on the verge of bankruptcy. It is a company working through issues. Lets not overstate the problems.
The market is very concerned about their execution and with good reason. That's far short of bankruptcy though. As an aside any stock trading for a 1/3rd of book with only product problems, I'd happily buy and take my chances.