NTP, RIM settlement drama

Dec 09 2005 - 04:52 PM ET | Research In Motion

The ugly legal battle between Research In Motion and NTP concerning some patents continues to provide angst to investors, there's news today of yet another rejected settlement offer. Forbes is reporting that NTP will settle for 5.7% of RIM's revenue through 2012. In the last fiscal year RIM reported revenue of $1.35 billion, making such a settlement very costly considering RIM's rapid growth.

RIM reportedly rejected the 5.7% offer and made a counter offer that was rejected:

"They have responded yesterday in a manner which is unacceptable so we're not negotiating. We're not sitting down trying to work out details. In other words, they didn't come close," Stout [Co-founder of NTP] told Reuters.

Earlier this year the two companies couldn't agree on the specifics for a $450 million settlement. It's possible that sales of BlackBerry devices will be halted by a court injunction, but most analysts agree that it's not likely.