NTP sued in November 2001, claiming that certain RIM products
were infringing on patents covering a method of using radio
frequency wireless communications in e-mail systems.
In November 2002 a jury found in favour of
NTP
on
16 counts and awarded it damages of $23 million, subject to an
increase if the judge found that RIM wilfully infringed
NTP
's patents. In August 2003 the judge did just that,
awarding increased damages of $53.7 million to
NTP
as
a result.
The judge also imposed an injunction on RIM, prohibiting the
company from selling in the
US
the BlackBerry and any
other products, software or services using the wireless technology
in dispute. But the judge stayed the injunction pending an appeal
to the
US
Court of Appeals for the Federal Circuit in
Washington, DC.
The Court of Appeals issued its ruling in December last year,
finding that RIM's Blackberry did indeed infringe on some of
NTP
's patents, but that one of the lower court's key
definitions, relating to the term "originating processor", was too
wide. The Court of Appeals therefore returned the case to the
District Court for further arguments over five claims that may have
been affected by the flawed definition.
The case has now settled out of court.
According to RIM, the two companies have signed an agreement
resolving all current litigation between them. RIM will pay $450
million to
NTP
, including $137 million already held in
escrow, and receive in return an unfettered right to continue its
BlackBerry-related wireless business without further interference
from
NTP
or its patents.
The settlement relates to all
NTP
patents involved
in the current litigation as well as all current and future NTP
patents, according to RIM. It covers all of RIM's past and future
products, services and technologies and also covers customers and
providers of RIM products and services, including wireless
carriers, distributors, suppliers and partners.
