The tenuous agreement between embittered combatants Research In Motion Ltd. and NTP Inc. appears to have fallen apart-RIM announced it will ask a U.S. court to enforce the companies’ recently announced settlement.
“NTP refuses to honor its obligations under the term sheet and finalize the definitive documents,” RIM said in a statement. “As a result, an impasse has been reached with respect to the settlement.”
RIM said it has asked the U.S. Court of Appeals for the Federal Circuit to stay its pending appeal on the case and send the issue back to the U.S. District Court for the Eastern District of Virginia. RIM said it will ask the district court to enforce the terms of the settlement, under which RIM would pay NTP $450 million to continue its BlackBerry business without worry from NTP’s patents.
RIM said if the case does go back to the district court, it expects NTP to ask for an injunction on BlackBerry sales in the United States. An NTP spokesman said the company would file a response to RIM’s motions this afternoon and did not comment further on the issue.
“While RIM maintains that an injunction is inappropriate given the facts of the case and recent doubts raised as to the validity of the patents in question, it will ultimately be up to the court to decide these matters, and there can be no assurance of a favorable outcome of any litigation,” RIM said in a statement.
Investors appeared disappointed with RIM’s continued legal troubles-the company’s stock dropped more than 3 percent following the news to about $74.78 per share.
Still up in the air is the U.S. Patent and Trademark Office’s re-examination of NTP’s patents, which will likely take a year or longer to be completed.
RIM announced its settlement with NTP in March. Investors-concerned over RIM’s continued legal losses to NTP-hailed the agreement as a major positive on the company’s stock.
