UPDATE - RIM settles NTP patent fight

03.03.2006

Canada-based RIM has been locked in a court battle for more than four years with privately held NTP, which successfully sued RIM for infringing on its patents.

NTP last week had asked Spencer for an injunction against BlackBerry service in the U.S. with a 30-day grace period for users and the immediate imposition of $126 million in damages for past infringement.

RIM and NTP reached a tentative deal valued at $450 million last year, but that agreement fell apart, and analysts had estimated any new settlement could cost RIM $1 billion.

The small portable BlackBerry e-mail devices are used by more than 3 million U.S. subscribers, including government officials and lawmakers.

RIM has challenged the validity of NTP's patents in an administrative proceeding at the U.S. Patent and Trademark Office but the process is lengthy.