Uncertainty Ahead For Blackberry

December 02, 2005: Research In Motion (RIM) has taken a hit in court with a US federal judge ruling that a previous US$450 million settlement with NTP Software is invalid.

NTP successfully sued RIM in 2002 for patent infringement, potentially putting a stop to Blackberry sales had RIM not agreed to settle. The settlement has since disintegrated in June this year due to wrangling over NTP’s patent claims on the technology.

The decision has thrown the handheld device maker’s future up in the air as it relies on the Blackberry for 70% of its revenue.

RIM’s US operations could be affected if an injunction is issued. Immediate action however, has been ruled out by US District Judge James Spencer.

If things go sour RIM has, as a contingency, “been preparing software workaround designs which it intends to implement if necessary to maintain the operation of BlackBerry services in the United States” the company says.

RIM plans to contest the ruling in the supreme court.

It is unclear how the ruling will effect Blackberry operations in Australia. Telstra and Vodafone were unavailable for comment.

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