Friday, February 24, 2006 2:01:05 PM
By Stuart Weinberg Of DOW JONES NEWSWIRES
TORONTO (Dow Jones)--No injunction...yet.
But Judge James Spencer's comments at a key hearing in Research In Motion Ltd.'s (RIMM) patent dipute with NTP Inc. suggest that RIM investors may not want to exhale just yet.
RIM's stock was up as much as 10% earlier Friday, apparently due to the fact that the judge didn't issue an injunction on sales and service of BlackBerry in the U.S.
However, a ruling Friday - one way or the other - was always a long shot and Spencer's comments at the hearing suggested RIM isn't out of the woods yet. The BlackBerry maker faces a possible injunction due to a previous infringement finding against it in its long-running patent dispute with NTP, a Virginia patent concern.
"You have left this incredibly important and critical decision to the court," Spencer said at Friday's hearing, adding that his legal remedy for the dispute "will be imperfect for RIM's business."
RIM has been betting that the judge wouldn't ignore the U.S. Patent and Trademark Office's ongoing review of NTP's patents when deciding on an injunction. The PTO has rejected all claims in all five disputed NTP patents in preliminary and secondary reviews. This week, it has issued final rejections of two of the patents, including a rejection on Friday.
However, NTP can appeal the rejections and the judge has always indicated that he wouldn't factor in the PTO's review until the appeals process is complete. That could take more than a year.
The judge reiterated his stance on the PTO review Friday, saying he is bound by a 2002 jury verdict that found RIM had infringed NTP's patents. The judge indicated that he is likely to first rule on final damages in the case before deciding whether to issue a patent injunction against RIM.
On Nasdaq Friday, RIM is up $5.74, or 8.2%, to $75.25 on about 12.8 million shares.
Company Web Site: http://www.rim.net -Stuart Weinberg, Dow Jones Newswires; 416-306-2026; stuart.weinberg@dowjones.com
(END) Dow Jones Newswires
02-24-06 1337ET
Copyright (c) 2006 Dow Jones & Company, Inc.
DJ RIMM CEO On CNBC: Settlement Hasn't Been An Option>RIMM -2-
NTP, a patent holding company that owns patents on wireless email delivery methods, alleged that Research in Motion violated several of its patents with the BlackBerry devices.
Research in Motion shares recently rose 7.7%, or $5.36, to $74.89 in Nasdaq composite trading.
-By Nicole Urbanowicz, Dow Jones Newswires; 201-938-5460; nicole.urbanowicz@dowjones.com
(END) Dow Jones Newswires
02-24-06 1357ET
Copyright (c) 2006 Dow Jones & Company, Inc.
=DJ UPDATE: Judge Ends RIM Hearing Without Injunction Ruling
(Updates the first four paragraphs with additional details about the judge's views from the hearing, and the last paragraph with Research in Motion's share price.)
By Mark H. Anderson Of DOW JONES NEWSWIRES
RICHMOND, Va. (Dow Jones)--BlackBerry-maker Research in Motion Ltd. (RIMM) Friday escaped a federal court hearing without getting slapped immediately with a patent injunction, but the judge handling the case admonished the company for not settling its dispute with NTP Inc.
"You have left this incredibly important and critical decision to the court," U.S. District Judge James Spencer said, adding that his legal remedy for the dispute "will be imperfect" for RIM's business. "The cloud over RIM's business will continue."
Spencer said he is surprised the two companies have not reached a settlement on the matter. He dismissed the importance of U.S. Patent and Trademark Office decisions issued Friday, saying he is bound by a jury verdict that found patent infringement by RIM.
The judge didn't rule from the bench - an unlikely outcome from Friday's hearing - but instead said he would rule as soon as possible. Spencer said he is likely to issue a decision on final damages before deciding whether to issue a patent injunction against RIM. The injunction hearing ended around 12:40 p.m. EST.
Earlier in oral arguments before the court, RIM Friday said that new Patent Office decisions denying claims by NTP Inc., of McLean, Va., demand an injunction not be issued against the Blackberry maker.
"The Patent Office has said these patents are invalid," said RIM attorney Henry Bunsow. "The patents at this point, if there was the new lawsuit, would not be enforceable."
Attorneys for RIM also said they have a workaround plan to avoid the patent claims, if necessary, and are prepared to implement it.
The Patent and Trademark Office on Friday issued a final rejection of a second NTP patent; it gave a final rejection of another NTP patent earlier in the week.
The PTO rejected patent number 5,436,960 Friday. This patent includes one of the claims that was remanded to the Virginia court. Earlier this week, the PTO rejected patent 6,067,451, which included two of the claims affirmed on appeal.
NTP, a patent-holding company, on Friday asked the district court to issue a patent injunction against Research in Motion and award $126 million in damages plus accrued royalties for patent infringement.
NTP has won several patent-infringement claims for wireless email processes in court against RIM, which has 4.4 million subscribers for its popular BlackBerry device.
Attorneys for RIM urged the court to order a new trial on the patent claims, arguing the outcome was substantially changed when a federal appeals court threw out some of the claims.
RIM said the royalty rate and damages should both be revisited.
A new trial might also give the company a chance to introduce U.S. Patent and Trademark Office decisions rejecting NTP's patents.
Judge Spencer, so far, has not tipped his hand on how he might rule, as both sides make extensive oral arguments to the court.
After the BlackBerry device came on the market, NTP alleged RIM violated several of its patents with the BlackBerry devices and won a judgment in federal court. NTP doesn't make a competing product, but owns patents on wireless email delivery methods.
As the case wound through numerous appeals, the U.S. Patent and Trademark Office has reached a different conclusion about the disputed patents.
Attempts to settle the dispute have failed, leaving the immediate outcome in the hands of Judge Spencer. Spencer has already ruled the BlackBerry-maker should pay NTP $53 million in damages and an 8.55% royalty rate, prompting RIM to set aside $244 million to cover the potential payments.
RIM shares recently were up $5.22, or 7.5%, at $74.75.
-By Mark H. Anderson, Dow Jones Newswires; 202-862-9230
(END) Dow Jones Newswires
02-24-06 1407ET
Copyright (c) 2006 Dow Jones & Company, Inc.
Daniel Nieves
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