News

Blackberry patent threat upheld 
Posted on Friday, October 07, 2005 - 12:00 AM

The U.S. Court of Appeals for the Federal Circuit ("Federal Circuit") issued a ruling today in the patent litigation between Research In Motion Limited ("RIM") and NTP, Inc. ("NTP"). The Federal Circuit denied RIM's petition to rehear the three-judge panel decision that was issued in this case on August 2, 2005.

RIM's Press Statement:

That three-judge panel decision would reverse the District Court's ruling of infringement on 6 of the 16 claims, and would find that RIM does not infringe those 6 claims. That decision would also vacate the District Court's finding of infringement of an additional 3 of the 16 patent claims asserted against RIM in this case, because the District Court erred in construing their scope, and would remand to the District Court for further proceedings based on the new claim construction. The decision would affirm infringement of the remaining 7 claims of the NTP patents. But the decision would vacate the damages award and injunction originally entered by the District Court, and would remand the case for further proceedings.

All of the NTP patent claims have now been rejected by the U.S. Patent and Trademark Office ("Patent Office") in its initial rulings in reexamination proceedings, based in part on prior art not considered in the District Court trial in 2002.

The Federal Circuit's ruling today lets stand the three-judge panel decision of August 2, 2005. RIM now plans to seek review of that decision by the U.S. Supreme Court. While en banc review at the Federal Circuit or further review by the Supreme Court is generally uncommon, RIM continues to believe this case raises significant national and international issues warranting further appellate review. RIM will ask the Federal Circuit to stay further proceedings in the case until the Supreme Court decides whether it wants to review the critical issues presented by the Federal Circuit's decision. If the patent dispute returns to the District Court on remand proceedings, RIM expects the District Court will decide all matters relating to enforcement of the settlement agreement announced by the parties on March 16, 2005, as well as the impact of the Patent Office re-examinations of the NTP patents on the litigation proceedings. RIM expects that NTP will ask the court to enter an injunction prohibiting RIM from providing BlackBerry service and from using, selling, manufacturing or importing its handhelds and software in the United States. While RIM maintains that an injunction is inappropriate given the facts of the case and substantial doubts raised subsequent to trial as to the validity of the patents in question, it ultimately will be up to the Courts to decide these matters and there can never be an assurance of a favorable outcome in any litigation.