Intellectual Property Law

The seemingly never-ending high stakes litigation between Research-In-Motion (?RIM?), the Canadian maker of BlackBerry devices, and NTP rolls on. To briefly recap: NTP obtained a jury verdict in its favor that RIM infringes several of NTP?s patents that claim a system apparently used by RIM as part of its wireless Internet service for BlackBerries. RIM appealed that judgment and lost. The parties purportedly reached a tentative settlement that called for RIM to pay NTP almost $500 million, but RIM failed in its attempts to enforce that settlement when NTP declined to proceed with it. In the meantime, BlackBerry users across the U.S. have been collectively holding their breath as the prospect of an injunction that would essentially shut down the BlackBerry service has loomed.

Last week the U.S. Supreme Court refused to take on RIM?s appeal of the Federal Circuit?s affirmance of the judgment against RIM. The Court apparently did not feel that one of the more discussed issues raised in the lower courts ? that RIM could be liable for infringing NTP?s system claims, as opposed to method claims, where some components of its allegedly infringing system were outside of the U.S. ? was significant enough to warrant the granting of certiorari. In another significant recent development, the District Judge in Virginia that has been presiding over the case set a hearing for late February on NTP?s request for a permanent injunction against RIM. Thus, everything could come to a head by as early as March.

Despite the very real threat that an injunction could put RIM out of business in the U.S. ? and thus leave millions of BlackBerry users in the lurch ? commentators believe that the parties will eventually reach a resolution that will keep BlackBerries in the pockets of loyal users. On the one hand, NTP does not manufacturer a product of its own, so it has to look to royalties from the sale of BlackBerries for revenues; an injunction would, in the end, not benefit NTP. On the other hand, an injunction would almost certainly be a near-fatal blow to RIM; it is working on a design-around, but the effectiveness and legality of such a design-around would involve substantial risks to RIM. Accordingly, most observers believe a settlement is ultimately likely, and the main effect of the parties? ongoing legal skirmishing is to establish which company has more leverage for settlement discussions.

Will this case actually end any time soon?  What do you think the outcome will be? Is that a good thing? The Blawg will let you know what happens.

Today's Blogger: Bob Sloss