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Patent Office doubts patents in BlackBerry dispute

OUT-LAW News, 24/06/2005

A long-running patent dispute between BlackBerry-maker Research in Motion (RIM) and holding company NTP Inc. took another turn this week, when the US Patent and Trademark Office case doubt on the validity of NTP patents.

The USPTO has already issued a preliminary rejection of two of the five patents that are the basis of NTP's case. On Tuesday it issued a preliminary rejection of another two, and it has yet to issue a ruling on the fifth.

The latest ruling will be a boost to RIM, which recently announced that the two companies were returning to court, despite agreeing settlement terms in March.

That agreement was supposed to resolve NTP’s allegations that certain RIM products were infringing on patents covering a method of using radio frequency wireless communications in e-mail systems. It provided that RIM would pay $450 million to NTP in return for an unfettered right to continue its BlackBerry-related wireless business without further interference from NTP or its patents.

However, the two firms are now arguing about the scope of the agreement. They also disagree about the impact of the USPTO ruling.

Speaking to the Associated Press, NTP lawyer James Wallace said that it would be years before the USPTO could issue a final ruling on the patents.

"The courts have said that a non-final ruling by the patent office won't have bearing on litigation," he said.

Not so, said RIM's CEO, James Balsillie.

"Go to any lawyer involved in this stuff. This is a very material development," he advised. "This comes after two years of work by [the USPTO]. To say this is another day, a walk in the park, is stretching credulity."

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