Here’s the Official Press Release from RIM regarding the NTP settlement:
Waterloo, Canada – Research In Motion Limited (RIM) (NASDAQ: RIMM; TSX: RIM) and NTP, Inc. (NTP) today announced that they have signed a binding term sheet that resolves all current litigation between them. As part of the resolution, NTP will grant RIM and its customers an unfettered right to continue its BlackBerry-related wireless business without further interference from NTP or its patents. NTP and RIM will be finalizing the terms of this resolution in a definitive licensing and settlement agreement in upcoming weeks.
This resolution relates to all NTP patents involved in the current litigation as well as all current and future NTP patents. The resolution covers all of RIMâ€™s past and future products, services and technologies and also covers all customers and providers of RIM products and services, including wireless carriers, distributors, suppliers and ISV partners. Under the terms of the resolution, RIM will have the right to grant sublicenses under the NTP patents to anyone for products or services that interface, interact or combine with RIMâ€™s products, services or infrastructure. The resolution permits RIM and its partners to sell its products, services and infrastructure completely free and clear of any claim by NTP, including any claims that NTP may have against wireless carriers, ISV partners or against third party products that use RIMâ€™s BlackBerry Connect / BlackBerry Built-In technology.
RIM will pay to NTP US$450 million in final and full settlement of all claims to date against RIM, as well as for a perpetual, fully-paid up license going forward. The amount relates primarily to settlement of past damages, and includes the judgment and money escrowed to date totalling US$137 million (the US$152 million previously accrued included approximately US$15 million in other litigation related fees). It is expected that a substantial portion of the US$313 million, which is the balance of the settlement amount, will be expensed in the fourth quarter, ended February 26, 2005.
Further comment and details will not be disclosed at this time. Additional details will be provided on RIMâ€™s Q4 results conference call scheduled for April 5, 2005, pending the completion of the definitive licensing and settlement agreement.
About Research In Motion (RIM)
Research In Motion is a leading designer, manufacturer and marketer of innovative wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services that support multiple wireless network standards, RIM provides platforms and solutions for seamless access to time-sensitive information including email, phone, SMS messaging, Internet and intranet-based applications. RIM technology also enables a broad array of third party developers and manufacturers to enhance their products and services with wireless connectivity. RIMâ€™s portfolio of award-winning products, services and embedded technologies are used by thousands of organizations around the world and include the BlackBerryÂ® wireless platform, the RIM Wireless Handheldâ„¢ product line, software development tools, radio-modems and software/hardware licensing agreements. Founded in 1984 and based in Waterloo, Ontario, RIM operates offices in North America, Europe and Asia Pacific. RIM is listed on the Nasdaq Stock Market (Nasdaq: RIMM) and the Toronto Stock Exchange (TSX: RIM). For more information, visit www.rim.com or www.blackberry.com.
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