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RIM and NTP Settle Suit

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This is good news?

draveed

Mar 3, 2006, 11:55 PM
Wait, I don't get why this is so good for RIM. USPTO is most likely going to invalidate the patents NTP owns. But now RIM has spent over $600 million on licensing them. Once the patents are invalidated, isn't that $600 million down the drain?

The only positive for RIM is that this buys them assurance there won't be any injunctions against their service, but is that really worth $600 million?
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danclang

Mar 4, 2006, 12:48 AM
yes. Namely because it's dragged on long enough and the settlement will just stop the bleeding from lawsuits from NTP. the USPTO is notoriously long in is decisions and NTP is sure to submit appeals after appeals.
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muchdrama

Mar 4, 2006, 3:17 AM
draveed said:
Wait, I don't get why this is so good for RIM. USPTO is most likely going to invalidate the patents NTP owns. But now RIM has spent over $600 million on licensing them. Once the patents are invalidated, isn't that $600 million down the drain?

The only positive for RIM is that this buys them assurance there won't be any injunctions against their service, but is that really worth $600 million?


When potentially billions are on the line? It's worth every dime. Especially when the United States government is a client.
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dthree

Mar 6, 2006, 10:23 PM
Its good because NTP does not have the right to ongoing royalties of RIM sales, which is what NTP really wanted. RIM knew that NTP had the patents and they released product anyway, hoping that the patents would get revoked. So consider the $600MM payment for past trangressions.
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