RIM Losses Patent Case to Mformation

Research In Motion (NASDAQ: RIMM) lost a crucial patent case to Mformation on Friday. Damages levied after the trail in the U.S. District Court for the Northern District of California were $147.2 million.

RIM impresses many investors and smartphone experts as a lost cause headed for a breakup, sale or Chapter 11 filing. Once the leader in the smartphone industry, it has lost that ground to Apple (NASDAQ: AAPL) and an army of Google (NASDAQ: GOOG) Android-based phones.

RIM tried to spin the news as something less than disaster:

Research In Motion Limited (RIM) (NASDAQ: RIMM), a world leader in the mobile communications market, yesterday learned that a jury returned a verdict against RIM in the amount of $147.2 million (USD) in an action brought by Mformation in the U.S. District Court for the Northern District of California. RIM is disappointed by the outcome and is evaluating all legal options. Additionally, the trial judge has yet to decide certain legal issues that might impact the verdict. RIM will await those rulings before deciding whether to pursue an appeal.

RIM has worked hard for many years to independently develop its leading-edge BlackBerry technology and industry-leading intellectual property portfolio, and RIM does not believe that the Mformation patent in question is valid.

Like most of the company’s PR meant to make it appear as a viable company, this will not work.

Douglas A. McIntyre