WATERLOO, Ontario-BlackBerry maker Research In Motion Ltd. lost a patent claim against NTP Inc., and could pay damages of $23 million. RIM said it would challenge the court’s decision.
The ruling seemed to alarm investors and analysts, sending the company’s stock down about 10 percent following the news to about $13.70 per share.
“As a result of the uncertainty introduced by this preliminary civil litigation loss, we are slightly lowering our target price on RIM to $14 from $15,” wrote BMO Nesbitt Burns in an analyst note. “We believe that the implications of this civil litigation will receive significant attention over the near term but will fade as the conflict settles into an extended legal process.”
RIM has been at the center of several legal battles in recent months and has faced off against Glenayre Technologies Inc. and Good Technologies Inc.
