Attention, Blackberry users in the U.S.: four years of war are over on the Research in Motion-NTP front with a win-win settlement. RIM has agreed to pay NTP US$612.5-million for a license that covers "all the current NTP patents involved in the litigation as well as any future NTP patents." As important, RIM has "the right to grant sublicenses under the NTP patents to anyone for products or services that interface, interact or combine with RIM's products, services or infrastructure." Needless to say, it's a huge - albeit expensive - victory for RIM, which can now focus on battling Microsoft, Palm, Nokia, etc. rather than NTP. Of course, it's also good news for NTP's 20 or so investors, who will walk away with a cool $20-million each. The question that has to be asked if how this dispute ever got this far. Did RIM simply mis-read NTP? Did NTP show more staying power than a little patent-holding company was ever expected to have? Another thing to consider is why this battle carried on for almost a year after a $450-million settlement blew up last year? Was another year of legal turbulence really worth $162.5-million for RIM? All in all, it's a good day all around, and you can expect many bottles of champagne to be popped all around Waterloo tonight as a huge, dark cloud has finally been lifted. Is there a lesson to be learned from all of this acrimony? Will this encourage patent holders to press forward knowing there is a big pot of gold at the end of the rainbow? Will it jump-start the patent troll business where holding companies snap up patents so they can squeeze targets for payment?
Update: A good explanation why a
settlement came to fruition is RIM's preliminary fourth-quarter results, which
suggest RIM will add 620,000 to 630,000 subscribers - far below the 700,000 to
750,000 range provided in December. The reason? "Uncertainty surrounding
the NTP ligitation caused corporate and retail customers in the
Tags: RIM, Research in Motion, NTP, Blackberry