Monday, June 13, 2005

NTP, RIM settlement undone?

from out-law:

With both firms under pressure from the [earlier CAFC] ruling, they settled the case in March, 2005. RIM promised to pay $450 million to NTP in return for an unfettered right to continue its BlackBerry-related wireless business without further interference from NTP or its patents.

The agreement, known as the “Term Sheet,” was only half a page long, and stated that the two firms would continue to negotiate in good faith to finalise the terms of a definitive licence and settlement agreement.

However, according to RIM, NTP is now refusing to honour its obligations to finalise the definitive agreement. RIM has therefore filed suit, asking the Court to enforce the Term Sheet.

Reuters reports that NTP has filed a counter-motion, arguing that it has become clear that the Term Sheet does not represent a meeting of minds. The two firms appear to be in dispute about the scope of the agreement as set out in the Term Sheet.

According to the New York Times, NTP does not believe that the agreement relates to technology developed by RIM since the first lawsuit filing, and is seeking additional payments in connection with this.


from BusinessWeek online (June 13):

Last week, Research in Motion (RIM) said NTP refused to honor its obligations and complete final documents for the settlement in the patent dispute. It asked the CAFC to stay a pending appeal and send the matter back to district court to enforce the settlement.



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