Research In Motion (RIM) and 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 RIM'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 RIM'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 RIM's BlackBerry Connect / BlackBerry Built-In technology.
RIM will pay to NTP $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 $137 million (the $152 million previously accrued included approximately $15 million in other litigation related fees). It is expected that a substantial portion of the $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 RIM's Q4 results conference call scheduled for April 5, 2005, pending the completion of the definitive licensing and settlement agreement.
