sandgk
Watson, Crick & A Twist
Today the Supreme Court refused to hear the appeal of Research in Motion (RIM) vs NTP, Inc.
The former (RIM) is the largest seller of mobile e-mail devices using cellular technology. They are based in Canada. The latter is a small patent holding company, which is described in Wikipedia as follows
Last year it seemed this case which RIM originally lost, and hence sought to settle, was reaching an amicable conclusion. Fly in the ointment? Seems Judge Spencer has been ruling favorably for NTP, Inc - hence RIM wanted to appeal the settlement. A factor that was cited as easing closure was the death of Thomas Campana, who had been particularly intransigent.
Originally RIM and NTP, Inc's settlement called for just over 5.7% of RIM shares. This figure was then raised more recently by the same Justice Spencer to 8.55%. The %age figures could come from future sales or ownership of common stock or a combination of the two. Also RIM offered a total of $450 Million USD to make this just go away - which offer NTP, Inc refused.
Instead NTP now seeks injuctions to preclude Blackberry use in the US (RIM's major domestic market) if matters are not resolved in its favor within a 30-day period. Curiously they see no problem with the destructive effect this might have on future Blackberry sales, the value of RIM's stock nor consumer faith in this technology.
Opinions differ as to whether NTP is simply a giant killer or a rapacious patent-trolling whore. Likewise opinions differ as to whether RIM is being raked over the coals in a foreign court or are quite simply due to pay NTP, Inc what they are owed.
To show you the Blackberry community view of this here is a piece from Blackberry Cool LINK note the implications for NTP, Inc should it get a finished settlement - the prospect of additional fees / royalties from other providers of cellular e-mail services.
With so much on the line, for such a small cadre of patent holders, why in heavens name hasn't NTP simply settled so they can take their funds? Some small part of which could then go and finance the next deal with RIM's competitors.
Lost in all this is one smaller nuance - RIM holds several patents of its own, some Canadian, some US, others worldwide. Surely, it would have been possible for their Patent Lawyers to identify prior existing intellectual property? Surely, the Patent Office itself - whether Canadian or US should have spotted the convergence between NTP, Inc's held IP and that for which RIM sought protection?
Bottom line, I still on the whole detest patents - (I find them to be a device suited to extort money from others - for which device no proof of concept is required - which I hold to be intellectually lazy). But, if patents are to be part of our commercial landscape then surely we need an improved pre-emptive means to avoid these types of disputes.
The former (RIM) is the largest seller of mobile e-mail devices using cellular technology. They are based in Canada. The latter is a small patent holding company, which is described in Wikipedia as follows
NTP, Inc. is a Virginia-based patent holding company, founded in 1992 by the late inventor Thomas J. Campana Jr. and Donald E. Stout. The company's only asset is a set of wireless email patents that were awarded to Andrew Andros and Thomas Campana and originally assigned to Telefind Corporation, a Florida-based company (now out of business) partly owned by Campana.
Last year it seemed this case which RIM originally lost, and hence sought to settle, was reaching an amicable conclusion. Fly in the ointment? Seems Judge Spencer has been ruling favorably for NTP, Inc - hence RIM wanted to appeal the settlement. A factor that was cited as easing closure was the death of Thomas Campana, who had been particularly intransigent.
Originally RIM and NTP, Inc's settlement called for just over 5.7% of RIM shares. This figure was then raised more recently by the same Justice Spencer to 8.55%. The %age figures could come from future sales or ownership of common stock or a combination of the two. Also RIM offered a total of $450 Million USD to make this just go away - which offer NTP, Inc refused.
Instead NTP now seeks injuctions to preclude Blackberry use in the US (RIM's major domestic market) if matters are not resolved in its favor within a 30-day period. Curiously they see no problem with the destructive effect this might have on future Blackberry sales, the value of RIM's stock nor consumer faith in this technology.
Opinions differ as to whether NTP is simply a giant killer or a rapacious patent-trolling whore. Likewise opinions differ as to whether RIM is being raked over the coals in a foreign court or are quite simply due to pay NTP, Inc what they are owed.
To show you the Blackberry community view of this here is a piece from Blackberry Cool LINK note the implications for NTP, Inc should it get a finished settlement - the prospect of additional fees / royalties from other providers of cellular e-mail services.
NTP Trying a new Spin
NTP’s previous spin was to play the nice guy by coming out with press releases stating that they will allow 30-day warning before cutting off Blackberry service, allowing government officials to still use their Blackberry, and allowing RIM to settle for 5.7%. Obviously that didn’t work, because everyone could see NTP for what it really is - a patent troll company. Now NTP is trying to spin itself by being the victim. NTP Inc. alleges its business has suffered “substantial harm” because of Research In Motion Ltd.’s refusal to settle a patent infringement case it lost against the company more than three years ago.
The small, Virginia-based patent holding firm said in court documents that other companies have refused to negotiate royalty licences from it because RIM, “the 900-pound gorilla in the wireless e-mail industry,” continues to willfully infringe on NTP technology.
NTP accused RIM yesterday of “free riding” on its intellectual property, and in a court filing it restated its call for an injunction on RIM’s BlackBerry wireless e-mail service in the United States.
With so much on the line, for such a small cadre of patent holders, why in heavens name hasn't NTP simply settled so they can take their funds? Some small part of which could then go and finance the next deal with RIM's competitors.
Lost in all this is one smaller nuance - RIM holds several patents of its own, some Canadian, some US, others worldwide. Surely, it would have been possible for their Patent Lawyers to identify prior existing intellectual property? Surely, the Patent Office itself - whether Canadian or US should have spotted the convergence between NTP, Inc's held IP and that for which RIM sought protection?
Bottom line, I still on the whole detest patents - (I find them to be a device suited to extort money from others - for which device no proof of concept is required - which I hold to be intellectually lazy). But, if patents are to be part of our commercial landscape then surely we need an improved pre-emptive means to avoid these types of disputes.