BlackBerry maker Research in Motion (RIM) announced yesterday that it will pay $450 million to settle a patent infringement suit brought against it by holding company NTP Inc. In return, RIM will receive a perpetual, fully paid-up licence for the technology.

NTP sued in November 2001, claiming that certain RIM products were infringing on patents covering a method of using radio frequency wireless communications in e-mail systems.

In November 2002 a jury found in favour of NTP on 16 counts and awarded it damages of $23 million, subject to an increase if the judge found that RIM wilfully infringed NTP's patents. In August 2003 the judge did just that, awarding increased damages of $53.7 million to NTP as a result.

The judge also imposed an injunction on RIM, prohibiting the company from selling in the US the BlackBerry and any other products, software or services using the wireless technology in dispute. But the judge stayed the injunction pending an appeal to the US Court of Appeals for the Federal Circuit in Washington, DC.

The Court of Appeals issued its ruling in December last year, finding that RIM's Blackberry did indeed infringe on some of NTP's patents, but that one of the lower court's key definitions, relating to the term "originating processor", was too wide. The Court of Appeals therefore returned the case to the District Court for further arguments over five claims that may have been affected by the flawed definition.

The case has now settled out of court.

According to RIM, the two companies have signed an agreement resolving all current litigation between them. RIM will pay $450 million to NTP, including $137 million already held in escrow, and receive in return an unfettered right to continue its BlackBerry-related wireless business without further interference from NTP or its patents.

The settlement relates to all NTP patents involved in the current litigation as well as all current and future NTP patents, according to RIM. It covers all of RIM's past and future products, services and technologies and also covers customers and providers of RIM products and services, including wireless carriers, distributors, suppliers and partners.

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