Who won, RIM or NTP?

14 Comments

The clear winners of the settlement deal are RIM investors, seeing how the stock is almost up 20% in after hour trading. However, things get a little greyer when deciding who won between RIM and NTP.

NTP got a bigger pay day than the original $450 million which it was close to settling last year. But the original deal included royalty fees for each Blackberry sold, instead of the one time $612.5 million. That’s $162.5 million dollar difference which NTP would probably have easily surpassed throughout the lifetime of its patents. And this is nothing compared to what they have got if NTP was awarded the 8.55% royalty fees in 2002 by Judge Spencer. There was no reason why Judge Spencer wouldn’t have kept his original verdict making NTP even richer but it was probably too much money for NTP to walk away from another time. Still this is such moot point considering NTP still got $612.5 million for patents that were deemed invalid by the USPTO.

With RIM, they settled for a lot less than the $1 billion that most experts predicted which helped RIM’s stock explode. Probably little comfort, seeing how RIM could have settled with NTP for the measly sum of $20 million at the time when RIM was still calling their devices pagers. That is the one mistake they made, albeit a very big mistake it was better than settling for the initial 5.7% royalty fees verdict rewarded to NTP in 2001 or the 8.55% in 2002. With revenues of $560 million last quarter, that would have meant a payment to NTP in the range of $25 million for just 3 months. Jim Balsillie’s ego may be a bit deflated but in the long run this was the best for RIM and he probably knows it seeing how he’s a lot richer – on paper anyways.

So we are putting the question out to our readers. Whether you think RIM or NTP won, or perhaps it was fairly even for both sides.

  • Dave

    How does a patent company ever lose if they get their payday? Of course NTP won. RIM lost and so did all of its partners and customers. At least RIM can put this thing behind them now and hopefully make a fully recovery from the damage that’s been done.

  • Dave

    How does a patent company ever lose if they get their payday? Of course NTP won. RIM lost and so did all of its partners and customers. At least RIM can put this thing behind them now and hopefully make a fully recovery from the damage that’s been done.

  • Kyle

    NTP won, spin it all you want but they got $612.5 million for patents that were invalid.

  • Kyle

    NTP won, spin it all you want but they got $612.5 million for patents that were invalid.

  • SLVR6

    Sadly NTP won by getting paid. However, RIM wins in the bigger picture now that NTP is off their backs.

  • SLVR6

    Sadly NTP won by getting paid. However, RIM wins in the bigger picture now that NTP is off their backs.

  • Rich

    You’re right that NTP settled for less than the $450 million + royalties deal but you can’t say they lost. NTP is the clear winner out of this and I’m worried about the message this sends out to patent trolls and wannabe patent trolls. Seeing how the USPTO is so swapped, you will probably see a lot more invalid patents being filed and most likely granted. More of this BS is going to hit the news and unless the USPTO does something, more BS verdicts will be granted.

    In the end everyone loses, except for the lawyers of couse.

  • Rich

    You’re right that NTP settled for less than the $450 million + royalties deal but you can’t say they lost. NTP is the clear winner out of this and I’m worried about the message this sends out to patent trolls and wannabe patent trolls. Seeing how the USPTO is so swapped, you will probably see a lot more invalid patents being filed and most likely granted. More of this BS is going to hit the news and unless the USPTO does something, more BS verdicts will be granted.

    In the end everyone loses, except for the lawyers of couse.

  • Melissa Ox

    Yeah, I agree this is a sad settlement and sends out all the wrong messages to all the wrong people. When the USPTO threw out the patents the lawsuit should have been thrown too. NTP should not have gotten a penny for it. Now it shows that using the legal system in the US you can steal lots of money from good leagl comanies and thier customers. Someone really needs to do something about it.

  • Melissa Ox

    Yeah, I agree this is a sad settlement and sends out all the wrong messages to all the wrong people. When the USPTO threw out the patents the lawsuit should have been thrown too. NTP should not have gotten a penny for it. Now it shows that using the legal system in the US you can steal lots of money from good leagl comanies and thier customers. Someone really needs to do something about it.

  • Shawn

    NTP is clearly the winner, But look for RIM to turn up the heat as far as innovation. This will generate more revenue than before and NTP will not be getting a slice of that pie.

  • Shawn

    NTP is clearly the winner, But look for RIM to turn up the heat as far as innovation. This will generate more revenue than before and NTP will not be getting a slice of that pie.

  • John M.

    Seeing how RIM’s share jumped about 20% in value, they easily made up for the $613 million they had to give away to NTP. The stock is going to be on the upside for awhile, so you can’t say RIM totally lost. I guess you can consider it a draw and it was a win-win for both parties.

    However, it eats me inside that such a company like NTP essentially got away with extortion.

  • John M.

    Seeing how RIM’s share jumped about 20% in value, they easily made up for the $613 million they had to give away to NTP. The stock is going to be on the upside for awhile, so you can’t say RIM totally lost. I guess you can consider it a draw and it was a win-win for both parties.

    However, it eats me inside that such a company like NTP essentially got away with extortion.