OT:RIM holds out olive branch
BlackBerry producer willing to pay higher cut of U.S. sales in patent dispute Kevin Restivo and Theresa Tedesco, National Post
Published: Friday, February 24, 2006 Article tools
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Font: * * * * On the eve of a court hearing to determine the BlackBerry's fate in the United States, Research In Motion Ltd. said it is prepared to pay a higher cut of its sales from the wireless e-mail device to settle a bitter patent dispute with NTP Inc.
James Balsillie, RIM's co-chief executive, told investors the Waterloo, Ont.-based company would be willing to pay NTP the rate they asked for from future U.S. BlackBerry sales as long as RIM can secure reasonable licensing agreements. NTP, the U.S. patent holding company, had been demanding 5.7% of all future BlackBerry sales south of the border during its settlement discussions over the past year.
"Would I do a [deal] today that would protect [RIM's] ecosystem at the rate [NTP] said? Absolutely! Just to get it done with," Mr. Balsillie told a business audience at a technology conference in Whistler, B.C.
A source at NTP, who asked not to be named, told the National Post Mr. Balsillie's comments were encouraging and could form the basis of a settlement to end the protracted legal battle.
"No, we have not heard that offer before," said the source. "It is appealing to us."
Previously, Mr. Balsillie said publicly that RIM was prepared to give NTP only a 0.5% slice of all future U.S. BlackBerry sales for the remaining seven-year life of NTP's patents.
The four-year-old dispute could lead to a shutdown of BlackBerry service for some two million U.S. users, including politicians, businessmen and celebrities.
RIM has argued the device, nicknamed the "CrackBerry" for its addictive nature, is vital to the economic well-being of the U.S.
Today, lawyers representing RIM and NTP will present arguments on a proposed shutdown of BlackBerry service in a federal court in Virginia. NTP wants Judge James R. Spencer to uphold an August, 2003, injunction he imposed on the sale of BlackBerry devices and software in the United States. RIM appealed the court's decision and the injunction was stayed in the interim.
During yesterday's 30-minute investor call, Mr. Balsillie said the stumbling block in settlement negotiations remains patent ownership. RIM wants NTP cede ownership of the patents after seven years.
"Would [a deal] last for another 10 or 20 years and give protection to my business? Not in a million years," he said. "Would I do a deal that does not give protection for my business? Not in a million years," he said. "We need something reasonable so that we can run our business."
"I don't know what's he talking about," the NTP source said of Mr. Balsillie's comments. "We have said all along they can run their business."
In a release late yesterday, NTP said its proposed licensing deal would protect RIM indefinitely. "NTP has offered RIM a license that fully protects everyone: its customers, carriers, and partners," the company said. "It is RIM's choice not to protect its customers, carriers and partners."
Last March, the companies agreed to settle the dispute for US$450-million only to have the deal fall apart three months later.
"It wasn't about money. They would not give us terms to allow us to continue on with our business," said Mr. Balsillie said at the conference yesterday. "We took it to an outside licensing counsel that said we would be crazy to take those terms."
