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BlackBerry case goes back to court
Judge to consider injunction against RIM's email service
WASHINGTON (MarketWatch) -- Research In Motion Ltd is headed for another court showdown Friday, when a federal judge considers whether to suspend U.S. service of the popular BlackBerry wireless-email device.
U.S. District Judge James Spencer is expected to review a request by NTP Inc., a small patent-holding firm in Virginia, for an injunction against U.S. sales and service of the BlackBerry. He's not expected to make a decision until at least early next week, though.
Despite booming sales, RIM has been hurt by concern over its legal liability and the possibility that BlackBerry customers might switch to rival services if the judge orders a shutdown. More than 4.3 million customers worldwide use the wireless device.
Shares of Research In Motion Ltd (RIMM : research in motion ltd com
are down 16% from their one-year high. The stock fell more than 4% Thursday.
In 2002, a jury found that RIM's BlackBerry technology violated patents held by NTP. Research In Motion repeatedly has appealed the original decision to no avail.
Last spring, the companies agreed to a tentative $450 million settlement, but the deal later broke down. Analysts estimate RIM might have to pay up to $1 billion to settle the case if it exhausts its legal options.
In recent weeks, however, RIM has received a boost from a decision by the U.S. Patent and Trademark Office to issue a final rejection of at least on NTP patent in an accelerated review of the firm's claims. The process normally takes several years.
The patent office has been under pressure to speed up its review by U.S. government officials, many of whom rely on BlackBerries. Indeed, the government has even argued that a service suspension could hamper the ability of federal employees to do their work.
Yet Spencer has said that he would not take the patent office's current review into account when making his decision. Earlier this week, he rejected a plea by the federal government for a separate hearing on what effects an injunction could have on government users. See related story.
The hearing will begin at 9 a.m. Eastern in Richmond, Va.
Bad blood
In the past month, RIM has gone on a sustained public-relations offensive to drum up support for its case. RIM also said that it has developed a software "workaround" so customers can continue to use their BlackBerries even if an injunction is issued.
The workaround, which customers would have to download, supposedly does not violate NTP patents. It's unclear whether the judge would accept the company's claim.
NTP, for its part, accused RIM on Thursday of trying to manipulate the political system in an effort to overturn the company's earlier victory in court.
"RIM now seeks a second bite at the apple by using its lobbyists and poltical connections to exert political influence to have the PTO reexamine NTP's patents,' the firm said.
NTP also charged that RIM is spreading disinformation about the status of their legal dispute. The firm said RIM's claim that its patents have been invalidated by the patent office are "flatly wrong."
In addition, NTP pointed out that it can appeal the rulings to an appeals board in the patent office as well as a federal court of appeals.
Judge Spencer, who presided over the original trial, could issue a ruling within a few days. In 2002, he was angered by what he called "questionable legal tactics" used by RIM during the trial, and he more than doubled the damages.
Jeffry Bartash is a reporter for MarketWatch in Washington.
BlackBerry case goes back to court
Judge to consider injunction against RIM's email service
WASHINGTON (MarketWatch) -- Research In Motion Ltd is headed for another court showdown Friday, when a federal judge considers whether to suspend U.S. service of the popular BlackBerry wireless-email device.
U.S. District Judge James Spencer is expected to review a request by NTP Inc., a small patent-holding firm in Virginia, for an injunction against U.S. sales and service of the BlackBerry. He's not expected to make a decision until at least early next week, though.
Despite booming sales, RIM has been hurt by concern over its legal liability and the possibility that BlackBerry customers might switch to rival services if the judge orders a shutdown. More than 4.3 million customers worldwide use the wireless device.
Shares of Research In Motion Ltd (RIMM : research in motion ltd com
are down 16% from their one-year high. The stock fell more than 4% Thursday.
In 2002, a jury found that RIM's BlackBerry technology violated patents held by NTP. Research In Motion repeatedly has appealed the original decision to no avail.
Last spring, the companies agreed to a tentative $450 million settlement, but the deal later broke down. Analysts estimate RIM might have to pay up to $1 billion to settle the case if it exhausts its legal options.
In recent weeks, however, RIM has received a boost from a decision by the U.S. Patent and Trademark Office to issue a final rejection of at least on NTP patent in an accelerated review of the firm's claims. The process normally takes several years.
The patent office has been under pressure to speed up its review by U.S. government officials, many of whom rely on BlackBerries. Indeed, the government has even argued that a service suspension could hamper the ability of federal employees to do their work.
Yet Spencer has said that he would not take the patent office's current review into account when making his decision. Earlier this week, he rejected a plea by the federal government for a separate hearing on what effects an injunction could have on government users. See related story.
The hearing will begin at 9 a.m. Eastern in Richmond, Va.
Bad blood
In the past month, RIM has gone on a sustained public-relations offensive to drum up support for its case. RIM also said that it has developed a software "workaround" so customers can continue to use their BlackBerries even if an injunction is issued.
The workaround, which customers would have to download, supposedly does not violate NTP patents. It's unclear whether the judge would accept the company's claim.
NTP, for its part, accused RIM on Thursday of trying to manipulate the political system in an effort to overturn the company's earlier victory in court.
"RIM now seeks a second bite at the apple by using its lobbyists and poltical connections to exert political influence to have the PTO reexamine NTP's patents,' the firm said.
NTP also charged that RIM is spreading disinformation about the status of their legal dispute. The firm said RIM's claim that its patents have been invalidated by the patent office are "flatly wrong."
In addition, NTP pointed out that it can appeal the rulings to an appeals board in the patent office as well as a federal court of appeals.
Judge Spencer, who presided over the original trial, could issue a ruling within a few days. In 2002, he was angered by what he called "questionable legal tactics" used by RIM during the trial, and he more than doubled the damages.
Jeffry Bartash is a reporter for MarketWatch in Washington.
posted by Jones Lang LaSalle NJ News Blog at 3:35 PM
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