Motorola and RIM finally at Peace
June 16th, 2010Research In Motion, the Canadian manufacturer of BlackBerry’s Unlocked Phones, has together with Motorola announced a joint statement stating their mutual agreement in ending any outstanding litigation between the companies. Although there have still not been any official disclosure, estimates suggest that the terms of the financial agreement would include all ongoing royalties directly to Motorola as well as an upfront payment, the amount of which has not yet been disclosed.
A press release issued by both companies states, “RIM and Motorola have decided to converge on an agreement that will result in long term benefits of intellectual property for both companies. Both parties have agreed to allow cross-licensing of different patent rights, such as patent rights dealing with technologies and other industry standards. Standards such as 2G, 3G, 4G and 802.11 would be covered.”
It has also been disclosed that both parties will convey certain patents with each other.
At the beginning of 2010, Motorola sued RIM, claiming that RIM has been illegally using patented technology of Motorola since 2007, even after expiration of the agreed upon licensed period. Most of the patents filled by Motorola involved that of wireless technology usage by RIM, such as unauthorized user access, Wi-Fi access and power management. Motorola had even filed a suite with the US International Trade Commission so as to
ban any imports made by RIM. It tried to ban all RIM products being sold in America. However, it has now come to light that RIM and Motorola have been able to reach an agreement, which includes a certain undisclosed upfront payment to Motorola.
Motorola is known around the world for various innovations in communication right from broadband connectivity to different Motorola handsets. In fact, Motorola had total sales of $22 billion for the year ending 2009 and is currently developing various innovations for mobile phones with video, picture as well as touch capabilities.
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