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RIM Settles, Pays Motorola

Motorola and RIM agree on patent dispute and payment plan.



) -

Research In Motion


settled with



over a patent infringement lawsuit, ending

two years of legal disputes


Though no terms of the deal were revealed, the two companies said in a press release that Motorola will receive a lump sum payment and ongoing royalties from RIM.

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Motorola had contended that RIM was using unlicensed technology related to mobile and WiFi access, as well as phone control systems. The two mobile phone makers say they have agreed to transfer some patent to each other and that they have entered cross-licensing agreements.

The news comes as both Motorola and BlackBerry maker RIM struggle to stay competitive in the smartphone market. RIM, despite talk of a revamped operating system, has yet to produce the sort of compelling new phone that will revive the company's popularity. Similarly, Motorola needs a strong follow up to its


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Droid phone that sold well this year.

Both companies face the looming arrival of


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newest iPhone in two weeks.

--Written by Scott Moritz in New York.