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Supreme Court hands RIM another defeat in patent case

WASHINGTON-Research In Motion Ltd. received more bad news this week as the U.S. Supreme Court declined to hear its case against patent holder NTP Inc.

The high court rejected a request from the Waterloo, Ontario-based BlackBerry-maker to review whether U.S. patent laws apply to foreign companies doing business in America. The justices made no comment in leaving the legal battle to lower courts.

The move continues a courtroom losing streak for RIM, which is facing an injunction that could kill service to U.S. BlackBerry users. A Virginia U.S. District Court in 2003 ordered RIM to pay NTP an 8.55 percent royalty on BlackBerry sales after it found the Canadian developer infringed on NTP’s patents.

NTP said the Supreme Court decision “closed the final path for RIM to avoid liability” in the case, and RIM may indeed be forced to pay hundreds of millions of dollars to settle the matter.

But RIM is hoping the case stalls long enough for the U.S. Patent & Trademark office to complete a review of NTP’s patents that could nullify the case. The patent office has already rejected all five NTP claims at the heart of the case on a “non-final” basis, and has publicly stepped up its efforts to deliver a final decision.

Shares of RIM slid $1.61, or 2.4 percent, to $65.01 after news of the high court’s decision.

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