RIM-NTP Dispute May Drag On For Two More Years
Maya Roney, 01.04.06, 11:44 AM ET
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Caris & Co. research analyst Susan Kalla maintained an "average" rating on Research in Motion (nasdaq: RIMM - news - people ), citing the wireless data company's ongoing litigation with patent-holding firm NTP.
"We continue to believe the NTP patent dispute will create enormous uncertainty and volatility in the stock," wrote the analyst in a recent research note. "Traders could profit by trading around their positions, but investors interested in fundamentals may be frustrated."
After speaking with sources yesterday, Kalla concluded that the patent dispute may not be resolved for another two more years and the negatives from legal risks will offset positives of strong fundamental growth, dampening upside and creating major swings based on news.
The research analyst also said the "two tracks" of the patent dispute could have different outcomes over the short term. So far, the Federal Court of Appeals has upheld the NTP patents and remanded the dispute to the District Court in Virginia, while the U.S. Patent and Trademark Office is on track to reject the same patents, she noted.
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