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RIM Settles Long-Standing Blackberry Claim

Posted by Zonk on Fri Mar 03, 2006 08:01 PM
from the end-to-a-long-and-sordid-tale dept.
David Jao writes "Research in Motion has agreed to pay 612.5 million dollars for a 'full and final settlement of all claims' resulting from the NTP patent lawsuit against the makers of BlackBerry. According to the article, the settlement is 'on the low end of expectations', perhaps because the patents in question had earlier been preliminarily ruled invalid by the US Patents & Trademarks Office." Many article submitters characterize this move as 'giving in' to NTP's tactics. What do you think?
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Related Stories

[+] RIM Wins Ground in Patent War 98 comments
ttyp0 writes "The maker of the BlackBerry on Wednesday gained some ground as it fights a battle over patents with NTP, which is trying to shut down most sales and service of the portable e-mail device in the United States. The U.S. Patent and Trademark Office issued a final rejection of one of five disputed patents owned by NTP, another step in a long process that Research In Motion Ltd. hopes will allow it to keep operating its U.S. BlackBerry service. NTP, a closely held patent holding company, has successfully sued RIM for infringement of its patents. I've been following the case closely as our company is about to invest in BES, a costly venture indeed."
[+] NTP Sues Palm, Alleging Patent Violation 121 comments
mikesd81 writes "The Seattle Time reports that NTP is now going after Palm for patent infringement on technology used in their devices. The suit asks the court to bar Palm from continuing to infringe on NTP's patents and seeks monetary damages for the alleged past infringements. At issues are eleven patents, dating from 1995 to 2001, according to the lawsuit. Five of the patents were part of NTP's lawsuit against RIM. The Palm complaint also centers on products, services and systems that integrate e-mail systems with wireless communications, including the Treo, Palm VII, Palm i700 and Tungsten products." You may recall NTP from the just-finished Blackberry case. Good to know they're staying busy.
[+] Hardware: The Real Inventor of Wireless Email? 106 comments
theodp writes "The NY Times reports on Geoff Goodfellow, possibly the real inventor of wireless e-mail, who says NTP was concerned that his earlier work might undermine its patent claims and went to some lengths to ensure that it did not, including gagging Goodfellow during the RIM lawsuit. Not only did high-school dropout Goodfellow - who hung out as a teen in the lab of Doug Englebart - describe wireless e-Mail in 1982, he implemented it in the early 1990's."
Offsite: BlackBerry saved
[+] Mobile: The Complete History of RIM 94 comments
museumpeace writes "I enjoyed reading Alex Frankel's thorough Tech. Review article on the luck, persistence and shrewdness that took RIM's proprietary mobile e-mail technology from presumed small niche product to the must-have blackberry that so many use today. Although the technology at the heart of the product was developed in 1989, it took years of further development, the lucky break of GPRS supplanting Mobitex, and the business smarts to jump on their first-mover advantage and the daring to partner with giant Nokia who could have swallowed RIM. Its a great example of how to succeed by carefully making a defacto standard out of a good proprietary technology."
[+] RIM Announces Workaround in NTP Case 118 comments
Justin Michael writes "RIM announces they have a software solution in the event that the courts rules in favor of NTP. The fix is called their multi-mode edition. Customers are being told that they do not need to take action yet, but would need to install the multi-mode edition on both servers and handhelds." A Reuters article also covers the announcement. From that article: "The company said it will soon begin shipping handsets with the software update in a dormant mode. It will make the update available at www.blackberry.com/workaround at a later, but as yet unspecified, date. RIM said the changes would require software updates, but the new system will deliver the same functions and performance."
[+] Blackberry Injunction Postponed 166 comments
Astin writes "The PTO has rejected the last of the NTP patents against Research in Motion. On top of this, Judge Spencer has decided that Blackberry service won't be shut down today, but he will issue a decision on the injunction 'as soon as reasonably possible.' RIM CEO Jim Balsillie just said on CNBC that it's 'quite possible' that NTP won't see any settlement from RIM at all now."
[+] RIM Loses NTP Case, To Pay $53 Million 256 comments
theodp writes "A judge has ruled in favor of holding company NTP in its patent-infringement case against BlackBerry maker Research In Motion, awarding monetary damages and fees of $53.7 million and granting an injunction preventing RIM from making, using, or offering to sell handhelds, services or software in the U.S. until the date of expiration of NTP's patents, the latest of which is May 20, 2012. The court then stayed that injunction, pending an appeal by the Canadian company."
[+] RIM - The Whole Story 262 comments
khendron writes "The Globe and Mail has published an article titled Patently Absurd, detailing the whole history of the RIM vs. NTP wireless war. It is a blow by blow account of how a dispute that could have been settled for a few million dollars is now 'a billion-dollar dagger hanging over RIM.' The article reads like a fairy-tale of egos, legal blunders, and patent stupidity."
[+] Another NTP Patent Invalidated 104 comments
darkmeridian writes "Bloomberg reports that the PTO has granted a non-final rejection of a third NTP patent asserted against Research in Motion in the Blackberry litigation. Five patents have been asserted against RIM, and only one of the three rejected has been found to be valid and infringed. Yet this development helps RIM as it seeks to avoid an injunction against operation of the Blackberry network pending appeal."
[+] NTP Gets a Taste of Its Own Medicine 49 comments
UltraAyla writes, "NTP's patent suits seem to have attracted the attention of Oren Tavory, a man who claims to have worked on a project with NTP founder Thomas Campana back in 1991. From the article: 'In September, Tavory filed a lawsuit against NTP in U.S. District Court in Richmond, VA, demanding that a judge issue a court order naming him as co-inventor on seven NTP patents, and accusing NTP of copyright infringement and unjust enrichment.'"
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  • I'm confused... (Score:5, Insightful)

    by chill (34294) on Friday March 03 2006, @08:04PM (#14847104) Homepage Journal
    ...if the patents that based NTP's lawsuit were going to be ruled invalid, what was the basis for the settlement? Why didn't RIM just tell NTP to go fuck themselves and wait for the patent office to finish. No patent == no patent infringement == no lawsuit.
    • Re:I'm confused... (Score:5, Insightful)

      by jarich (733129) on Friday March 03 2006, @08:07PM (#14847125) Homepage Journal
      I suspect that they were bleeding customers like crazy from all the bad publicity and the near shutdowns. I can't imagine how much stress their bean counters were under! ;)

      Also, do you really know that the patents were invalid? I haven't looked at it that closely.

    • Re:I'm confused... (Score:5, Insightful)

      by cyngus (753668) on Friday March 03 2006, @08:08PM (#14847136)
      Simple. The uncertainty surrounding RIM was hurting their business and was going to continue to. By resolving the dispute sooner they keep many customers they might have lost and have a better chance of attracting more. NTP could have kept this dragging through the courts for years and possibly sunk RIM in the process. Gotta love corporate shakedowns.
        • Re:I'm confused... (Score:5, Insightful)

          by GoMMiX (748510) on Friday March 03 2006, @08:44PM (#14847384)
          Ahhh, but people thought this case had something to it. They had patents. SCO on the otherhand has nothing, and even they know it.

          Lets not forget IBM was not losing business at all as a result of SCO's suit against them. SCO's suit against IBM has actually been positive publicity for IBM - that much has been apparent since the day it was filed.

          The blackberry, on the otherhand, had a lot of people very concerned given the validity the courts gave to the claims (IE: they already won once).
  • 612.5 million?! (Score:5, Insightful)

    by BewireNomali (618969) on Friday March 03 2006, @08:04PM (#14847107)
    Low end of expectations? Wow. This justifies patent squatting to the unscrupulous looking for the cash-out.

    • Re:612.5 million?! (Score:5, Insightful)

      by faedle (114018) on Friday March 03 2006, @08:14PM (#14847170) Homepage Journal
      Yep. And it all started when RIM very loudly and publically stated that they would sue others based on their patent claims.

      RIM got exactly what they deserved.
      • Re:612.5 million?! (Score:4, Insightful)

        by tsm_sf (545316) on Friday March 03 2006, @08:50PM (#14847414) Journal
        Yeah, it's like watching the two biggest bullies in school fight each other. It's fun to see one of them get his ass kicked, but you know that the other will still be after you tomorrow.

        ((man, sometimes I feel like I just post on /. to exercise my analogy lobe))
      • Re:612.5 million?! (Score:5, Interesting)

        by augustz (18082) on Friday March 03 2006, @10:19PM (#14847826) Homepage
        Hey Faedle,

        Someone else who has followed this case from the beginning :) Yep, the patent system is messed up, and some of us remember a lot of RIM claims to litigate others out the market with a similar sets of bogus patents (not even the small keyboard ones).

        I think their early IP talk actually popped them up on NTP's radar initially, they were making a lot of noise about it.

        They got exactly what they deserved, but the system could still use a fixing, badly.
  • Disappointed (Score:5, Insightful)

    by OzPhIsH (560038) on Friday March 03 2006, @08:05PM (#14847115) Journal
    I'm pretty disappointed with this move by RIM. I was hoping that by going all the way through the courts we might get some serious patent reform out of the whole mess. While this brought a lot of attention to the issue, I fear that it will just go back to being business as usual at the patent office.
    • Re:Disappointed (Score:5, Interesting)

      by harlows_monkeys (106428) on Friday March 03 2006, @09:13PM (#14847516) Homepage
      I'm pretty disappointed with this move by RIM. I was hoping that by going all the way through the courts we might get some serious patent reform out of the whole mess

      This might not have been a good case for prompting patent reform. I haven't read the patents myself, but from the discussion on the TWiT podcast, they were saying that the patents actually looked pretty legitimate, and were only likely to be overturned because of the immense pressure the government was putting on to keep their Blackberries going.

      In other words, it's not clear that NTP is that bad guy here, and the RIM is the good guy.

  • No other choice... (Score:5, Insightful)

    by avalys (221114) on Friday March 03 2006, @08:05PM (#14847117)
    They had no other choice but to give in. There was an article in the WSJ today that talked about how many people were switching to competitor's products, just because of the uncertainty surrounding the Blackberry.

    It will be interesting to see how easily they recover from this.
  • by morganew (194299) * on Friday March 03 2006, @08:17PM (#14847202)
    The industry and millions of consumers are breathing a collective sigh of relief tonight.

    Despite averting a BlackBerry shutdown, however, this case is just more proof that the US Patent Office is in crisis. While some of NTP's patents may prove to be valid, it is clear that many of them should never have been granted in the first place.

    The US Patent Office's failure to ensure quality threatens the patent system that is so critical to innovative small tech firms. If the quality of patents is not improved, the industry may lose faith in the entire system.

    Some may not like software patents, but the reality is that companies have them. Open Source Champion IBM is the single largest patenter in the WORLD. they still make billions (with a b) off of patent licensing - including software/method patent licensing. Small companies like 'slingbox' have patents to ensure that they get VC funding and to prevent Sony from just creating the exact same product and steamrolling them.

    I, along with Diane Peters from OSDL, Bruce Perens, lawyers from IBM and others got together at the USPTO last month to talk about ways to improve patent quality. No solutions yet, but some good discussion.

    The quality issue MUST be solved, and NOW; so before you launch into a general "patents suck" rage, take a reality check and think about ways to get more prior art into the patent system and improve the quality.

    It will be several years before patent reform legislation becomes law, so we are going to to have to find technology solutions that we can implement now, and hope that legislation fixes the things we can't.

    Morgan Reed
    • Stop the nonsense (Score:4, Insightful)

      by tkrotchko (124118) * on Friday March 03 2006, @11:00PM (#14847969) Homepage
      " along with Diane Peters from OSDL, Bruce Perens, lawyers from IBM and others got together at the USPTO last month to talk about ways to improve patent quality. No solutions yet, but some good discussion."

      Why don't you get together to discuss the fact that most of the significant discoveries in computers, information and software fields came about before software patents.

      And if you want to quibble with me, fine, but answer this: If software patents were important to drive innovation in the high-tech industry, then how did some many great pieces of software get written in the days before software patents?

      Let's not pretend that software patents are an old, time-tested way of protecting software. They're not, they're less than 10 years old. So rather than accept a relatively recent ruling by a court (Not even a law from congress), why don't we do the right thing and stop software patents. The fact that the courts lowered the bar so that nonobviousness was no longer the primary determinant of whether a patent should be granted should be reason enough to get rid of them.

      Name something... anything out there in the market that was only possible because of software patents. The idea of these patents isn't to make NTP rich simply because of knowing how to game the system, but to advance the state of the art. These patents aren't doing that; if anything, they're doing the opposite.

      I'm opposed to coming together and working out an arrangement because it presupposes these patents are acceptable. They are not. Software patents are so tremendously wrong that I think they're something that have to be opposed on general principal.
  • by coljac (154587) on Friday March 03 2006, @08:35PM (#14847326) Homepage
    Despite RIM's unethical courtroom tactics (which backfired spectacularly), I can't help but be very disappointed by this decision. SIX HUNDRED MILLION dollars - a staggering sum - to be paid to these guys, for what? No hard work, no product, no contribution to science and technology. It's extortion, and I don't even understand the leverage they used given their patents are invalid. If I was the CEO of RIM (ignoring the realities of fiduciary duties to shareholders) I would rather go bankrupt than let the patent trolls become wealthy from my hard work.

    The one good thing to come of this is it has raised the problem in the public eye. Congressmen thought they would lose their Blackberries. Let's hope some real reform is on the way.

  • by Trailer Trash (60756) on Friday March 03 2006, @08:38PM (#14847346) Homepage
    is a patent troll with $600M in the bank.
  • by lmlloyd (867110) on Friday March 03 2006, @09:30PM (#14847599)
    I love how the big company always gets the benefit of the doubt in today's corporate-loving world.

    The founder of NTP had many years of wireless experience, and developed many technologies that moved wireless messaging forward. When RIM showed up on the scene, he sent them (as well as some other companies) a few letters to inform them that they were infringing on his patents. RIM ignored the letters, and continued doing business as though they had never heard of this guy. He didn't sue, he just chalked it up to a losing battle that there was nothing he could do anything about.

    Then he saw a story about how RIM was suing other companies out of existence using patents that were infringing on HIS patents. At that point he figured it was time to try and get a big law firm involved, and went after RIM. He died of cancer before this whole court case was ever finished, but I am glad to hear his family will be well off.

    The fact of the matter is, this never would have even happened if RIM hadn't started the whole thing by employing predatory practices with their dubious patents to drive competition out of business in the first place. I have no sympathy for RIM at all. They flat out lied in court, and were busted for it, they used some pretty questionable lobbying practices to get NTP patents invalidated, and they have practiced far more dubious patent extortion than NTP ever did. I don't think this is a case of a fine, upstanding company getting a shakedown by a troll. This is a case of pretty sweet karma in action!
  • by tekrat (242117) on Friday March 03 2006, @09:41PM (#14847652) Homepage Journal
    This didn't solve anything. If anything it made things worse. I didn't see *ANY* reporting that the flawed patent system was at fault.

    All I heard from the mainstream news media was the Blackberry was being sued, and now they settled for $600 Million, so, in my mind, they must have been at fault.

    Furthermore, this payment will embolden other patent trolls who want to be fed to the tune of millions for doing nothing.

    And the Patent System will go merrily on it way, because now that Senators can use their Blackberries again, do you think they are going to give a tinker's damn that the system is flawed?

    If I'd been running Blackberry, I'd have shut down service for 24 hours, with the message "we can't provide service due to a flawed patent system.".

    Does anybody here remember the day everyone made their webpages BLACK as a protest? Does anybody remember when it was OKAY to fight back against something that was wrong? Now it seems, the M.O. is to give up, pay the bastards and lick your wounds, regardless of who's right or wrong.

    In fact, the more wrong you are, the harder you should fight, it seems, because these days, the good guy always loses. (RIAA anyone?)

    What a wonderful lesson to teach our younger people.
    George Lucas should make a movie on that subject.

    So this is how freedom dies. With a $600 Million payout.

    TTYL
    A disgusted and concerned old-timer.
  • by feijai (898706) on Friday March 03 2006, @10:01PM (#14847743)
    RIM:
    1. Worked so hard to run its competitors out of the market with lawsuits that The Register nicknamed it "Lawsuits in Motion" [theregister.co.uk]
    2. Ignored all entreaties from NTP for a year, forcing NTP to eventually sue them.
    3. Lied in court so often that they received three-times punative damages just for their court conduct alone, plus attorneys' fees.
    4. Gave Congress free Blackberries as a tactic to get them hooked, then
    5. (Successfully) Lobbied Congressmen to put big-time pressure on the USPTO to invalidate NTP's patents while the court case was ongoing (can you say "cut off their air supply"?), regardless of their actual validity. In the US, if you're doing something illegal, you can always get the law changed if you have enough money. Even if you're a foreign company.
    6. Tried to push through a congressional resolution that shutting down the Blackberry network would be a "threat to national security" because of the free Blackberries they'd hooked the feds on.
    7. (Successfully) Lobbied the Canadian government to weigh in as if this were a matter of international concern.
    8. Purposely delayed resolution until after NTP's original inventor died.

    This company deserves to go straight to hell. $612 million is a rap on the knuckles.

  • by waldo2020 (592242) on Friday March 03 2006, @11:41PM (#14848135)
    Actually, Campana's company Telefind did have working products, albeit prototypes, exhibited at Comdex in 1990. There weren't terrible reliable - as the networks weren't either, only one way email to pagers but they worked. AT&T was online as primary customer but ducked out leaving Telefind high and dry. Campana inherited tha patents after a lawsuit against Telefind."Mr. Narayanan liked Telefind's products, thinking they might fit well with the Safari project. AT&T had an e-mail system and a prototype computer; what it lacked was a paging service that could put the two together. But after a year of flirting with Telefind, even demonstrating Telefind's system at the Comdex computer show in Las Vegas, AT&T opted for a larger partner in Skytel." RIM's 800 and 900 series pagers were released in 1990 - well after Telefind. Mind you they were true 2-way pagers operating on Motorola's wireless packet Mobitel network. What brought on the NTP lawsuit was RIM's own arrogance in suing othe companies like Palm for having the audacity to incorporate tiny keyboards in their products. C'mon RIM! Who's the troll now?
    • by PCM2 (4486) on Friday March 03 2006, @09:26PM (#14847582) Homepage
      I'm not in favor of NTP or anything, but the people who point out that NTP had no product are missing the point of patents.

      Suppose you invented the Blackberry. You. Right now. You have the idea. Now what? Do you have the financial backing to manufacture a million Blackberrys? Do you have the industry connections to go around and make deals with all the mobile carriers to get your service into people's hands? No. But it's still a good idea, so you want to go forward with it. That means finding potential partners and investors. But just talking to those people about it is spreading the idea around. Suppose you go to the mobile company and say, "I have these plans for this service, I'm going to call it Blackberry." What's stopping them from just making the service themselves and cutting you out of the picture completely?

      Your patent is.

      In an ideal world, that's what patents are for: protecting the little guy inventor from big business.
      • by DShard (159067) on Friday March 03 2006, @09:55PM (#14847708)
        Which is utter bunk. NTP came in after the fact, well after precedent and patented obviousness. These people had no product other than litigation. Their business plan was to sue successful companies.
            Now let's assume that you are the little guy. You come up with something utterly missing in the market. Let's call it middle management crack. So you patent it, build a company on it and become the "next big thing".
            During that time, a different company, comes in who doesn't actually make anything new or produce any products. What they do is buy "analysts" to come up with how your design is "not patented". Next they produce legalease to sue you for your unique business model. At no point have they ever had _one_ customer and now they sue you.

        This is what happened in this case. In an ideal world, people can not use the justice system to extort money from you.
      • I've never looked at the specific claims in this case, but I think many people on slashdot are against patents as they are applied to software. Many people feel that patent law should not be applied to software. From a business perspective or the way the courts like to view computer stuff its a "product". As a computer scientist, its viewed as an algorithm... or more generally math. Everything we write can be proven correct with math and if someone patented how to calculate loan payments or the pythagorean theorem we'd have serious problems. Sometimes there is only a few possible ways to solve a problem from a practical standpoint. Should those few solutions be patented? Anyone interested in open source software, especially things like linux should see that software patents are a bad thing. In my example, the little guy is hurt because he can get handed a lawsuit for adding something to the linux kernel.

        Of course I know nothing about law. :)

        I still don't understand how someone can patent a genetic defect in blood. Isn't my wife prior art?
    • Re:AW MAN! (Score:4, Informative)

      by feijai (898706) on Friday March 03 2006, @10:08PM (#14847775)
      NTP's patents were bogus to begin with.
      You've not read the patents, have you? They were original and significant, and I am not aware of any relevant prior art. USPTO invalidated them largely because RIM paid congressmen a boatload of money to pressure the crap out of USPTO to do so.
      They had no product.
      They did originally. They sold 'em at tradeshows.
      RIM was winning in court.
      RIM was losing big time in court. The judge was at the stage of awarding NTP 3x punative damages. He was likely going to rule against RIM anyway even though USPTO had invalidated the patents.

      RIM was wise to settle.