Research in Motion Ltd. (NASDAQ: RIMM) has its old enemy, and perhaps new best friend, back in the market of suing smartphone makers after being dark for some time. The difference is that R-I-M is actually in fine standing as its issues are behind it. It seems that the NTP “patent troll” is now going after other smartphone makers such as Apple Inc. (NASDAQ: AAPL), Google Inc. (NASDAQ: GOOG), Microsoft Corporation (NASDAQ: MSFT). and Motorola Inc. (MOT).
NTP filed a lawsuit this Thursday in the U.S. District Court in the Eastern District of Virginia against Apple, Google, Microsoft, Motorola, HTC, and LG Electronics. The suit alleges that at least eight patents related to the wireless delivery of email are being violated.
R-I-M’s settlement was $612.5 million back in 2006. Even though R-I-M may have come out ahead in the patent fight at the USPTO had it waited, the precedent (or at least a precedent) was set after its settlement was finalized. Apple and HTC are also fighting among each other over whose patents are being violated. Patent suits are nothing new. Some call these frivolous lawsuits. Patent lawyers call it bread and butter.
The term patent troll does exist, and it is exactly what it sounds like. NTP is a classic patent troll. It sells no products and never has. But it did file many patents, and it has scored empire-making millions for its filings.
The good news for R-I-M here is that it has all issues resolved regardless any other violations. If R-I-M has paid its ransom, the others have not. This suit could ultimately lead to injunctions and sales halts of competing brands, which could ultimately leave R-I-M — in the most extreme of all outcomes — as the only ‘legal’ smartphone that could be sold via wireless carriers in the U.S.
R-I-M shares are up 3.6% at $51.26 on the news. Apple is down 0.15% at $257.72, Microsoft is down 0.37% at $24.32, and Motorola is down 0.3% at $6.83. Google is up today because of the China license.
JON C. OGG
Top Gaining Stocks
Top Losing Stocks