RIM Lays Down Burden
Although the settlement offer is a significant amount for RIM, the outstanding balance represents just a third of the $814 million in cash and short-term investments the company had on hand at the end of its third quarter. Indeed, many analysts were worried the company would have to pay far more, including a hefty ongoing royalty fee. Had NTP prevailed in the case, it could have barred RIM from offering its services anywhere in the U.S., which is by far its most important market.
NTP "could have gotten more," said one analyst at an independent research shop, who also asked to remain anonymous. "$450 million is nothing to RIM."
"They could pay $1 billion and probably go out and raise more tomorrow," added the analyst, who has no position in RIM and whose firm does no investment banking.
The fears about the lawsuit helped send RIM's shares
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