RIM scores new licensees
by Mike Dano
Oct. 06, 2003 1:32 PM EST
Research In Motion Ltd. apparently scored two new major licensees--Motorola Inc. and Sony Ericsson Mobile Communications--according to a new research report from investment banking firm ThinkEquity.
ThinkEquity said RIM's Chief Operating Officer Don Morrison confirmed the news late last week. RIM declined to comment on the report. RIM's stock was up almost 4 percent following the news to about $43.30 per share.
RIM unveiled its BlackBerry Connect licensing program earlier this year and currently partners with Nokia Corp., High Tech Computer Corp., Palm Inc., Microsoft Corp. and Symbian. Under the program, device makers can license RIM's BlackBerry software for use in their own devices, which allows device users to connect to BlackBerry servers. Nokia and HTC have licensed the technology for use in their own devices, while Microsoft and Symbian are offering the software to their own operating system licensees.
However, RIM's BlackBerry Connect program recently hit a snag when Nokia said it will delay the release of its BlackBerry-capable device in the United States. Nokia had planned to sell its 6800 messaging device with BlackBerry software, but said it delayed those plans due to the patent battle between RIM and NTP. Nokia said it will sell the BlackBerry-capable 6800 outside of the United States, however.
RIM and NTP have been battling over several key BlackBerry patents. A jury earlier this year ruled in favor of NTP, ordering RIM to pay the company royalties. The payments are on hold pending RIM's appeal.
ThinkEquity addressed the legal concerns, but said the issue won't affect sales outside the United States, which represent a growing opportunity for RIM and BlackBerry Connect licensees.
"We believe that these new licensees (Motorola and Sony Ericsson) represent the top OEMs in the industry and should drive adoption of BlackBerry beyond the enterprise over the next two years," ThinkEquity said in its research note.
ThinkEquity recently downgraded RIM, but said it raised its estimates on the new licensing news. ThinkEquity said it makes a market in RIM securities.
