Download your 2 for 1 Pizza Express voucher
The BlackBerry service, based on the handheld e-mail device that has become a must-have tool for the business elite, could be shutdown in the United States after a bitter legal battle over a key patent.
This week, NTP, a small firm that holds a crucial patent that allows e-mails to be sent to mobile devices, announced a licence agreement with Visto Corp - an arch-rival of Research In Motion. (RIM), the company that created the BlackBerry. The announcement could put further pressure on RIM to settle a patent claim from NTP which could be worth up to $1 billion (£565 million), or face having its service shut down altogether.
With neither side apparently prepared to concede any ground, the dispute seems set to continue. "It sounds like a little bit of Russian roulette," Carl Tobias, a law professor at University of Richmond, told AP.
Visto has also took out a legal writ against Microsoft, accusing the company of infringing patents. Visto said it is seeking a permanent injunction to stop Microsoft from "misappropriating" technology developed nearly ten years ago by Visto and its co-founder.
To avoid similar litigation, RIM competitors including Nokia and Good Technology have drawn up licence agreements with NTP, which is based in Arlington, Virginia. In addition to signing its deal with Visto, NTP bought a stake in the company, which licences its mobile e-mail technology to Sprint Nextel and Vodafone, the British-based telecoms company.
If a court orders a shutdown of BlackBerry's service, it is likely to give users just 30 days' notice to switch to other devices.
In the meantime, RIM's share price has plunged 21 per cent this year amid growing concerns from users. RIM has 3.65 million BlackBerry subscribers, most of them in the United States. Competitors such as Nokia and Palm are already looking to grab sales from the market leader.
A federal jury in Richmond backed NTP's patent claim in 2002. Since then, RIM’s appeals have failed and a $450 million settlement has unravelled. RIM is now relying on separate proceedings by the US patent office, which has preliminarily rejected the patents at issue, but is awaiting a court decision.
James Wallace, a lawyer for NTP, says he plans to argue in federal court in Virginia that these deals show there are available options for customers in the event of an injunction against RIM.
Although some industry observers believe NTP has no financial incentives to force a shutdown, lawyers for the company have claimed otherwise.
"I understand that theory, and when BlackBerry was the only game in town, there was a certain logic to it," Mr Wallace said.
Mark Guibert, vice president of corporate marketing for RIM, said that he thinks most people will see through Visto’s "timing and rhetoric."
"This is a small player looking for free publicity through a last-minute licence with undisclosed terms for patents that have been rejected by the patent office," he said.
Meanwhile, customers have complained of being left in the dark over the future of the BlackBerry service.
Officials with Northwest Airlines were worried enough to demand a recent meeting with RIM.
Although the airline said it was satisfied with RIM’s information, it also noted that it had identified alternative suppliers and was continuing to monitor the BlackBerry situation to ensure service would not be interrupted.
In a statement, RIM said it was speaking directly to customers and partners to explain the patent office’s decisions and to "assure them that we have prepared a contingency plan to implement a software workaround should it eventually become necessary."
Articles from our sister site WSJ.com:
You may be asked to subscribe to read certain articles
Industry sectors news at a glance. Interactive heatmap, video and podcast
Get ready for the winter sports season, with our resort guides and snow reports
We are backing British business, what is the confidence of the nation and what businesses are succeeding?
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
2006/06
£POA
Surrey
2009
£114,950
Derbyshire
The best policy at the
best price
Be Wiser Insurance
£POA
Surrey
Highly competitive six figure
Nationwide
Swindon
Competitive benefits package
Chartered Institute of Builders
Ascot
Competitive salary + benefits
NHS Direct
London
£125K
Meltwater News
Nationwide Positions
With Part Exchange Crest Nicholson could get you moving.
Award-winning riverside development, SW11.
Luxury apartments for sale from £350,000.
Find out more about our luxurious apartments and houses for sale in the heart of Sussex.
for sale in the French Alps
from E189,000.
We're offering extra savings on Voyager & Adventure of the seas Mediterranean Cruises fr £549.
Book by 28 Feb!
Includes 3* accommodation throughout, a 15 minute Apollo night helicopter flight down the Las Vegas strip and United Airlines flights from Heathrow.
Same break by air costs £189. Valid for weekend travel until 31 Aug 10.
Get covered on your travels with a superb range of policies at great prices
Visit InsureandGo.com
Family friendly villas with Quality Villas. Book with the specialists.
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Milkround
Copyright 2010 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.