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RIM fails to stall BlackBerry dispute

OUT-LAW News, 24/10/2005

A ban on US sales of BlackBerry handhelds came one step closer on Friday when the US Court of Appeals for the Federal Circuit denied a motion from its maker to suspend the patent dispute until the US Supreme Court decides whether it will hear an appeal.

Advert: Phishing conference, London, 27th October 2005The Court of Appeals sent Research In Motion's long-running case against patent-owner NTP Inc. to the District Court for further proceedings. Earlier this month, the Court of Appeals denied RIM's petition to rehear a decision in August that upheld most of NTP's patent infringement claims over the BlackBerry device, although it dismissed one relating to a business method patent.

RIM said on Friday that it expects the District Court will decide all matters relating to the enforcement of the settlement agreement announced by the parties in March, the impact of the Patent Office re-examinations of the NTP patents on the litigation, and the further proceedings ordered by the Federal Circuit in its August ruling.

RIM said it also expects that NTP will imminently file a new motion asking the District Court to enter an injunction prohibiting RIM from providing BlackBerry service and from using, selling, manufacturing or importing its handhelds and software in the US.

While RIM maintains that an injunction is inappropriate given the facts of the case and substantial doubts raised subsequent to trial as to the validity of the patents in question, it acknowledged that it ultimately will be up to the courts to decide these matters and said "there can never be an assurance of a favourable outcome in any litigation."

In addition, RIM will ask the Supreme Court to suspend the court proceedings while RIM seeks Supreme Court review of the case. While further review by the Supreme Court is generally uncommon, RIM said it continues to believe this case raises significant national and international issues warranting further appellate review. 

The company points out that all of the NTP patent claims have now been rejected by the Patent Office in its initial rulings in re-examination proceedings, based in part on prior art not considered in the District Court trial in 2002.

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