More details soon, I'm on the road. Check the Faq section for more news updates. Again RIM and NTP came to a settlement on the patent issues.
RIM & NTP Settle! - $612.5 Billion!
Waterloo, ON - Research In Motion Limited (RIM) (NASDAQ:RIMM; TSX: RIM) and NTP, Inc. (NTP) today announced that they have signed a definitive licensing and settlement agreement. All terms of the agreement have been finalized and the litigation against RIM has been dismissed by a court order this afternoon. The agreement eliminates the need for any further court proceedings or decisions relating to damages or injunctive relief.
RIM has paid NTP $612.5 million in full and final settlement of all claims against RIM, as well as for a perpetual, fully-paid up license going forward. This amount includes money already escrowed by RIM to date.
The licensing and settlement agreement relates to all patents owned and controlled by NTP and covers all of RIM's products, services and technologies. NTP grants RIM an unfettered right to continue its business, including its BlackBerry® related business. The resolution permits RIM and its partners to sell RIM products and services completely free and clear of any claim by NTP, including any claims that NTP may have against wireless carriers, channel partners, suppliers or customers in relation to RIM products or services, (including BlackBerry Connect and Built-In technology), or in relation to third party products and services, to the extent they are used in connection with RIM products and services.
With respect to the accounting treatment of today's announced settlement of $612.5 million, RIM had previously accrued $450 million and the additional amount of $162.5 million will be recorded in Q4. RIM will report the full accounting details in its Q4 earnings report on April 6th.
As of November 26, 2005, RIM's total of cash, cash equivalents, short-term, long-term investments and escrow funds was approximately $1.8 billion.
As of November 26, 2005, RIM's outstanding common shares totalled approximately 185.1 million.
All amounts reported in US dollars.