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RIM Loses Another Round in Court

Company ordered to pay almost $9 million more in patent infringement case.

Peter Sayer, IDG News Service

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Research in Motion, the company behind the BlackBerry wireless e-mail device, was ordered Friday by a U.S. court to pay almost $9 million in enhanced damages following a trial over a patent dispute with NTP.

Last November, a jury in the U.S. District Court for the Eastern District of Virginia found in favor of NTP's claim that RIM had infringed on NTP patents relating to the wireless transmission of e-mail, and it awarded damages of over $23 million.

NTP then asked the judge to rule that RIM's infringement of the patents was "willful," a decision that could have resulted in a tripling of the damages awarded.

On Friday Judge James R. Spencer found in favor of NTP, but ruled that qualifying compensatory damages of $17,736,720 would be enhanced by a factor of only 0.5, resulting in an award of enhanced damages against RIM of $8,868,360, according to court documents. He also awarded attorneys' fees to NTP, but reduced these by 20 percent.

Settling Its Accounts

RIM, of Waterloo, Ontario, plans to make provisions for the damages and other charges in its accounts for its 2003 and 2004 fiscal years, the company said in a statement Monday. It will make an additional accounting provision of $13.75 million to $14.25 million to account for the enhancement to compensatory damages, and around $5 million for NTP's attorneys' fees, RIM announced.

This will bring the total provision for litigation in RIM's fiscal year 2003, ending March 1, 2003, to between $58.25 million and $58.75 million, the company said. RIM will also make provisions in its quarterly accounts for fiscal year 2004 for enhanced compensatory damages and postjudgment interest, it said. The company estimates that these will total $8 million to $9 million in its first fiscal quarter, which it expects to report on June 25.

The matter is not closed yet, RIM warned in its statement.Various matters, including damages awards and last November's jury verdict, remain subject to appeal.

RIM's avenues for escape are narrowing, however: On Friday, the judge rejected two requests by RIM for a new trial.

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