RIM and NTP settle for $612 million

4 Mar 2006 | BlackBerry , RIM | 2 comments


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Research in Motion and NTP have finally agreed to sign a agreement on Friday. RIM will pay $612.5 million to patent holding company NTP to settle the dispute that had threatened to shut down service for 3 million Blackberry users.

Under the settlement, NTP granted RIM the right to keep running its BlackBerry business, the company said in a statement. "The agreement has been finalized and NTP's lawsuit against RIM has been dismissed by a court order," the Canadian company said. "The settlement means no further court proceedings or decisions about damages are necessary."

RIM had negotiated a 2004 settlement with NTP of $450 million, but the deal fell apart before it was completed. Palm will benefit somewhat in the current quarter from the lawsuit, Richards believes: "But RIM's shortfall, around 100,000 subscribers, is only two weeks worth of business for them. They can claw their way back either in the current quarter or Q2," he said.

The price of RIM's shares was halted at $72.00 at 4:37 p.m. in anticipation of the announcement. RIM's stock price soared after shares began trading after-hours, reaching as high as $86.30 in after-hours trade.

~ 2 comments ~

by rim on Mar 4, 2006

Finally! I have been waiting for this for soooo long. All of my friends thought RIM is going to be shut down, so they stopped using Blackberries. HAH! Justice!

by whew on Mar 4, 2006

finally!