Updated from 8:30 a.m. EST

Shares of Research in Motion ( RIMM) jumped early Monday on news that it has settled a lawsuit against Good Technology, a privately-held software company.

RIMM shares were lately up $3.50, or 3.9%, to $93.18.

After the bell Friday, RIMM issued a release saying the two companies have entered a royalty-bearing license agreement under which RIMM will receive a lump sum settlement during the first quarter of fiscal 2005, as well as ongoing quarterly royalties. Other terms weren't disclosed.

In 2002, Research in Motion filed four separate lawsuits against Good Technology alleging, among other things, that its wireless products infringe on RIMM's patents and that it had stolen trade secrets.

One research analyst who follows Research in Motion, Jeff Embersits of Shareholder Value Management, said the sharp after-hours rise was suprising. "There aren't enough details in the release to tell how meaningful the settlement is," he said. "Without knowing how big the payment is, the rally is a little surprising to me."

A legal fight between Research in Motion and another company, NTP, is of greater consequence, Embersits said. "RIMM is already setting aside just under 9% of revenue in escrow every quarter, or almost 50% of its earnings," he noted. "RIMM has already lost that suit and they're back in court trying to get it overturned. For me that's a lot more important than Good."

NTP first launched a lawsuit accusing RIMM of patent infringement in 2001. In August 2003, a U.S. District Court awarded a victory to NTP when it granted an injunction prohibiting RIMM from selling BlackBerries. However, the court stayed the injunction while RIMM appeals.