NEEDHAM, Mass., March 6 -On the brink of a possible court-ordered shutdown of its BlackBerry service in the US, Research In Motion (RIM) agreed to end it its long legal battle with nemesis NTP, Inc. in a settlement that calls for RIM to pay NTP $612.5 million. NTP has agreed to a full and final settlement of all claims and will give RIM lifetime rights to the disputed patents and the ability sublicense them to other parties including wireless carriers and mobile phone makers -- a sticking point in previous negotiations.
The conclusion to this long running legal battle is precisely in line with TowerGroup predictions in its December 2005 ViewPoint, "BlackBerry in a Jam: Considering Alternatives." TowerGroup predicated no service shutdown would occur, and that the two companies would settle at a price far less than the $1 billion USD estimated by many other firms. Bob Egan, research director of the TowerGroup Emerging Technologies research service, reinforces his prior recommendations that enterprises should evaluate mobile platform systems not just for their email features, but for other relevant business compelling applications and their respective security, device agnostic nature, cost, manageability and reliability.
With the RIM settlement behind the industry, the more important issues at hand relate to a distracted Congress that fails to understand its role and impact on technology innovation and the US economy, an outdated and understaffed patent office, and technically naive Courts. In particular, there are strong concerns for the welfare of emerging security technology firms that like RIM (3% of total market potential) generate much needed innovation, but could be side-wiped by similar patent dispute "trolls" potentially lying in wait.
To arrange an interview with Egan on the implications of the RIM/NTP settlement, please contact Faye Nikolaidis at +1.212.455.8078 or fnikolaidis@cooperkatz.com.
About TowerGroup:
TowerGroup is the leading advisory research and consulting firm focused on the global financial services industry. A respected source for trusted information and advice, TowerGroup brings many of the world's leading financial institutions, technology companies, and professional services firms a deeper understanding of the business and technology issues impacting their organizations. Headquartered near Boston in Needham, Massachusetts, and with offices in North America, Europe, and the Asia-Pacific region, TowerGroup serves a global client base. Visit http://www.towergroup.com for more information.
Contact:
Faye Nikolaidis
CooperKatz for TowerGroup
p. +1-212-455-8078
fnikolaidis@cooperkatz.com
