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Court Finds Research In Motion Violated Patent
Canadian Press
12/14/04 1:23 PM PT


Last August, a U.S. court awarded NTP US$53.7 million in damages and an 8.6 percent royalty on all the revenue from U.S. BlackBerry sales. The court also ordered an injunction that would prevent RIM from making, selling or servicing its devices in the United States.

A U.S. appeals court ruled today that Research In Motion (Nasdaq: RIMM) , maker of the BlackBerry e-mail device, infringed on another company's patent -- but sent the case back for further proceedings.

RIM of Waterloo, Ontario, Canada, had appealed an earlier court decision that Virginia firm NTP Inc. owns the rights to some of the key technology used in the popular wireless device. NTP claimed that the BlackBerry infringed on five of its patents.

Last August, a U.S. court awarded NTP $53.7 million in damages and an 8.6 per cent royalty on all the revenue from U.S. BlackBerry sales. The court also ordered an injunction that would prevent RIM from making, selling or servicing its devices in the United States.

The injunction was stayed while RIM appealed the decision to the highest U.S. patent court.

Shares in RIM were halted pending news of the court decision. Before the halt, they were up 62 cents at $111.30 (Canadian) on the Toronto stock market.