UPDATE - RIM settles NTP patent fight

03.03.2006
Research In Motion Ltd. (RIM) announced late Friday that it has agreed to pay US$612.5 million to NTP Inc. to settle the long-running legal fight between the two companies.

The patent dispute had threatened to end RIM's popular BlackBerry e-mail service to millions of users in the U.S. and has been the subject of a contentious, four-year patent battle between the two companies.

Under the terms of the settlement, which was announced late in the day, RIM will make a one-time payment to NTP. In return, NTP has granted RIM a license that enables RIM to continue its BlackBerry service.

"We are pleased to have reached an amicable settlement with RIM," said Donald E. Stout, NTP's co-founder. "We believe that the settlement is in the best interests of all parties, including the U.S. government and all other BlackBerry users in the United States. NTP is pleased that the issue has been resolved and looks forward to enhancing its businesses."

Government BlackBerry users had fretted that losing their service could cause them problems, and had asked a federal judge last week to be exempt from any order to shut down the service.

According to NTP, the deal covers all current NTP patents involved in the litigation as well as future NTP patents. "All of RIM's past and future products, services and technologies will be covered as well as all RIM customers and providers of RIM products and services, including wireless carriers, distributors, suppliers and ISV partners," NTP said in a statement. "The agreement permits RIM and its partners to sell its products, services and infrastructure completely free and clear of any claim by NTP...."