This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

RIM, NTP Reach Settlement

Updated from 7:10 a.m. EST

Research in Motion (RIMM) will pay $450 million to technology developer NTP Inc. for a license that will give it the "unfettered right" to continue selling its BlackBerry message device.

The term sheet outlining the settlement covers all past, present and future uses of the technology by RIM and will allow the company to sublicense the property "to anyone." The agreement removes a major overhang to RIM's stock, which closed Tuesday at $67.09 and ran up Friday when word of settlement talks were reported.

RIM's shares surged $12.38, or 18.5%, to $79.47.

"The resolution permits RIM and its partners to sell its products, services and infrastructure completely free and clear of any claim by NTP, including any claims that NTP may have against wireless carriers, ISV partners or against third party products that use," RIM said in a release.

The lawsuit by NTP has been a thorn in RIM's side for years. In 2003, after finding that RIM had violated NTP's patents, a federal court issued -- then stayed, pending appeal -- an injunction against RIM that would have prevented the company from selling its popular BlackBerry pagers and service in the U.S. In December, an appeals court overturned the $54 million judgment the lower court issued, but affirmed the lower court's ruling on 11 of 16 claims that RIM had infringed on NTP's patents.

Tuesday's settlement "primarily to settlement of past damages," RIM said, and includes the 2003 judgment and money escrowed to date. RIM said it expects to expense the remaining $313 million in its fourth quarter ended Feb. 26.

NTP and RIM said they will complete terms of the resolution in a definitive licensing and settlement agreement in upcoming weeks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
PLMO $0.00 16.67%
NOK $8.01 0.00%
AAPL $128.46 0.00%
FB $78.97 0.00%
GOOG $558.40 0.00%

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs