Wednesday 18 July 2012

RIM ordered to pay $147 million for patent infringement

San Francisco District court has ordered Researchers in Motion (RIM), makers of Blackberry to pay $147 million as damages for infringing patents of Mformation technologies. Mformation took Blackberry to court on an allegation of violating their patent on “remote management of device from server” which is used in blackberry mobiles.

Court ordered RIM to pay $8 per every mobile device already sold in use which amount to $147 million when summed up. Thankfully court didn’t take into consideration any of the current and future sales, which if taken up would have resulted in much higher damages.

In a statement, RIM said that it is disappointed by the outcome, and is evaluating its options.

"RIM has worked hard for many years to independently develop its leading edge Blackberry technology and industry leading intellectual property portfolio, and RIM does not believe that the Mforemation patent in question is valid"

This decision is the second biggest loss for RIM in patent infringement suits, after March 2006 settlement with NTP Inc
It would be interesting to watch how RIM proceeds with the case, whether to go for review or appeal or to settle the issue ignoring its current drop in market.

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