RIM and NTP sign settlement agreement

Mar 03 2006 - 05:23 PM ET | Research In Motion

rim logoResearch In Motion and NTP have signed a settlement agreement that will end litigation. This comes before an injunction ruling from the district court that was expected at any time. The $612.5 million deal is quite a bit higher than the $450 million settlement from a year ago that was never finalized. The agreement resolves RIM from any liabilities concerning NTP patents. There will be no service interruption or necessary software updates for BlackBerry users.

RIM had already saved $450 million for a settlement in escrow and will record the extra $162.5 million charge in its Q4 statement. More in depth details of the agreement were not announced, such as what would happen if the US Patent and Trademark office stands by its rejections of the infringed NTP patents.

To get more details on the lawsuit, check out our past RIM/NTP coverage.

According to RIM:

The licensing and settlement agreement relates to all patents owned and controlled by NTP and covers all of RIM's products, services and technologies. NTP grants RIM an unfettered right to continue its business, including its BlackBerry related business. The resolution permits RIM and its partners to sell RIM products and services completely free and clear of any claim by NTP, including any claims that NTP may have against wireless carriers, channel partners, suppliers or customers in relation to RIM products or services, (including BlackBerry Connect and Built-In technology), or in relation to third party products and services, to the extent they are used in connection with RIM products and services.