A new court ruling has dramatically raised the stakes in Research in Motion's (RIM's) legal battle with NTP.
Industry analysts Gartner are warning corporations using BlackBerry devices to place mission-critical BlackBerry deployments on hold until RIM's legal position is clarified.
On 30 November 2005, a U.S. federal court denied a motion by RIM for a stay of proceedings in the patent infringement suit filed against it by the patent holding company NTP. RIM had requested the stay pending re-examination of NTP's patents by the U.S. Patent Office. The court also ruled that the $450 million term sheet agreement between RIM and NTP, announced in March 2005, is not enforceable.
The ruling strongly suggests that unless RIM reaches a settlement with NTP, the court will issue an injunction effectively ending RIM's operations in the U.S.
Such an injunction would force RIM to shut down its U.S. operations, meaning U.S. BlackBerry users would lose messaging services - though BlackBerry telephones would continue to function - and international users would lose message service while travelling in the U.S.
Gartner believes RIM and NTP will reach a settlement within three weeks. Such an agreement would be in both companies' interests, and any long-term negative impact on RIM would likely be minimal. If no settlement is reached, RIM will likely appeal to the U.S. Supreme Court.
Gartner have also issued some recommendations for current and prospective RIM customers:
• Stop or delay all mission-critical BlackBerry deployments and investments in the platform until RIM's legal position is clarified
• Demand that RIM's work-around plans be made available - in detail and in public - and carefully review their legal and operational impact. Gartner advises customers not to sign any agreements that could involve them in the RIM/NTP dispute
• Consider alternative solutions for mission-critical applications, but recognize that these offerings, too, may face the threat of NTP patent infringement claims
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