RIM has extended its existing licensing agreement with InterDigital to cover crucial elements of its next generation devices
Under the new deal, Research In Motion Limited (NASDAQ:RIMM) (TSE:RIM) will be able to use InterDigital’s patents in its upcoming BlackBerry 10 products, which are set to become available later this month.
The patent in question is for 4G LTE technology. The successor to 3G, 4G LTE will allow for even faster mobile download times. Consumers will be able to stream television directly to their mobile devices, rather than pre-loading content to their memory cards.
The technology is quickly becoming the new standard, though RIM CEO Thorsten Heins previously admitted that one of the company’s missteps was its slow move towards implementing 4G LTE into its products.
The news of the deal comes just weeks after Research In Motion Limited (NASDAQ:RIMM) (TSE:RIM) settled its patent dispute with Nokia. RIM will from now on be giving Nokia “ongoing royalties” for the rights to use its patents, RIM also gave the company a one-off payment. As a result, both parties have now withdrawn “all existing patent litigation.”
RIM’s BlackBerry devices, despite being wildly popular some years ago, have since been overtaken by iPhones and Android devices. The launch of the BlackBerry 10 is sure to be the final word in whether RIM continues to trade – a botched launch could spell the end of the company.
Lawrence F. Shay, President of InterDigital, commented on the latest agreement with RIM: “This agreement, which extends the term of our patent license with Research In Motion Limited (NASDAQ:RIMM) (TSE:RIM) and includes 4G product coverage, continues the strong validation of InterDigital’s patent portfolio and our patent licensing program.”
“We continue to experience very good progress in our 4G licensing program and look forward to adding additional 4G licensees.”
The company recently sold 1,700 patents to Intel Corporation (NASDAQ:INTC). The patents, which were related to WiFi, 3G, and LTE, sold for $375 million.
Research In Motion Limited (NASDAQ:RIMM) (TSE:RIM)’s shares were up slightly today, by 0.08 percent, to $11.81.