RIM faces loss of U.S. market for BlackBerry

[David Farber <dave () farber net>]

Begin forwarded message:

From: Monty Solomon <monty () roscom com>
Date: October 9, 2005 2:19:53 PM EDT
To: undisclosed-recipient:;
Subject: RIM faces loss of U.S. market for BlackBerry



RIM faces loss of U.S. market for BlackBerry
Sales injunction possible from patent case

By SIMON AVERY
Saturday, October 8, 2005 Page B5
TECHNOLOGY REPORTER

Research In Motion Ltd. faces the spectre of an injunction against
sales of its BlackBerry communications products in the United States
after a court there yesterday refused to rehear a patent infringement
case against the company.

The U.S. Court of Appeals for the Federal Circuit in Washington
denied RIM's request that its full slate of 12 judges hear the case.
In August, a panel of three of the court's judges upheld most of a
jury ruling that found RIM had infringed on patents held by NTP Inc.,
a patent holding firm in Virginia.

While the decision was not unexpected, the prospect of the injunction
sent shares of the Waterloo, Ont.-based company tumbling as much as
10 per cent. They closed on the Toronto Stock Exchange down 4 per
cent, or $3.20, at $75.95.

The U.S. accounts for about 70 per cent of RIM's total sales.

The dispute between the two companies now heads back to district
court in Virginia, where NTP says it will seek to have a previously
awarded injunction imposed.

RIM, however, said it will ask the federal court to stay further
proceedings while the company tries to persuade the U.S. Supreme
Court to review the appeal court's August decision.

Legal experts don't expect the top court to hear the case because it
already has a couple of intellectual property cases before it. But in
a news release, RIM said the case "raises significant national and
international issues warranting further appellate review."

Specifically, the company has argued that, because parts of the
alleged infringement occurred on its relay and routing system that is
based in Canada, U.S. patent law should not apply. Under U.S. law,
the territorial reach of a patent is limited and generally only
enforceable if the infringement occurs in the United States. However,
both the district court and appeals court rejected this argument.

...

http://www.theglobeandmail.com/servlet/ArticleNews/TPStory/LAC/ 
20051008/RRIM08/TPBusiness/Canadian



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