In a rare victory for troubled Research In Motion Limited (NASDAQ:RIMM), a patent-infringement verdict against them has been overturned by a judge, after it was determined that the mobile software maker Mformation Technologies Inc. did not show the BlackBerry maker violated a questioned patent.
Just last month, a San Francisco federal jury had awarded $147.2 million to Mformation, after it determined an infringement. This stemmed from a 2008 case alleging that RIM had infringed on a 1999 Mformation invention that remotely managed wireless devices. Its software enabled companies to access their employee cellphones remotely for either software upgrades, password changes, or erasing data from stolen phones.
Research In Motion Limited (NASDAQ:RIMM) also said that Wednesday’s decision also vacated a jury award to Mformation Technologies for $147.2 million in damages.
On Thursday, Research In Motion Limited (NASDAQ:RIMM) announced the decision in a press release. Steve Zipperstein, RIM’s chief legal officer, said in the release, “We appreciate the Judge’s careful consideration of this case. Research In Motion Limited (NASDAQ:RIMM) did not infringe on Mformation’s patent, and we are pleased with this victory. The purpose of the patent system is to encourage innovation, but the system is still too often exploited in pursuit of other goals. Many policy makers have already recognized the need to address this problem and we call on others to join them, as this case clearly highlights the significant need for continuing policy reform, to help reduce the amount of resources wasted on unwarranted patent litigation.”
For a company that’s had nothing but bad news, it was a nice win for Research In Motion Limited (NASDAQ:RIMM). But it may not be over yet, as Mformation could appeal the ruling. If this happens and goes in Mformation’s favor, the verdict would not be reinstated, but a new trial would take place.
RIM’s shares went up 3 percent upon disclosing the news, but it is currently trading up 1.57 percent to $7.74. In the last week, its shares have been up 11.37 percent.
Why? One answer is its new tablet.
On Aug. 2, RIM announced its new 4G LTE BlackBerry PlayBook would become available on Aug. 9 to Candian carriers. In the “coming months” the tablet would be supported by US, Europe, South Africa, Latin America, and Caribbean carriers.
David J. Smith, Executive Vice President, Mobile Computing at Research In Motion, said in a press release, “We’re excited to bring customers the first BlackBerry PlayBook tablet, with support for 4G LTE networks. The new 4G LTE BlackBerry PlayBook offers a broad range of premium features, including a stunning 7 inch display, front and rear facing HD video cameras, HDMI out, and stereo speakers, and it also offers premium performance on high speed cellular networks, helping customers to be more productive than ever and to make the most of their time on the go.”