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Patent office rejects NTP claim ahead of BlackBerry injunction hearing

WASHINGTON—Less than 24 hours before a hearing that could result in a shutdown in service to U.S. BlackBerrys, NTP Inc. blasted Research In Motion Ltd. for what it called “mischaracterizations” of the validity of NTP’s patents.

The charges stem from the U.S. Patent and Trademark Office’s review of the patents, which RIM was found to have violated following a 2002 trial. The patent office has issued “non-final” rejections of the patents in recent months. This week, the patent office issued a final rejection of one claim at the heart of the issue.

The USPTO is in the process of a final review of the rest of the patents, and could invalidate NTP’s claims entirely. RIM has consistently issued media releases updating industry watchers on the patent office’s progress.

NTP, which would have at least two options for appeals should the patent office issue final rejections of all the claims, said RIM’s public statements are misleading given the case’s progress in the courts. Both sides are due to appear in U.S. District Court in Virginia tomorrow for a hearing that could result in an injunction that could kill BlackBerry service to U.S. subscribers.

“Since the federal court system has the final ‘say’ in the matter, RIM’s assertions that the patents have been invalidated are flatly wrong,” NTP said in a prepared statement. NTP also accused RIM of “using its lobbyists and political connections to exert political influence” during the patent office’s review.

Those familiar with the case see little chance of a settlement before tomorrow morning’s hearing. And an injunction seems unlikely, given both the patent office’s review and the potential damage to U.S. businesses that depend on the BlackBerry.

RIM claims it has developed a viable software “workaround” that would allow it to continue service without violating NTP’s patents. But experts say the technology may lead to service disruptions that could force RIM back to the bargaining table.

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