Bad news is hitting Research In Motion, the mobile phone maker based in Canada. In an infringing patent lawsuit with software company Mformation, the jury of the US Federal District Court of Northern California found RIM guilty of infringing wireless mobile patents.
The case began 4 years ago when Mformation sued RIM over remote management systems for mobile wireless devices. A unanimous decision from the jury will have RIM paying an $8 royalty for each BlackBerry mobile device using the RIM's server. Damages will also be paid to international sales and government clients.
Mformation founder Rakesh Kushwaha's commented on the decision as his company's patent portfolio includes a wide range of management features for wireless devices, Wifi, and Cell Networks across the globe.
"Mformation created the mobile device management category in the late 1990s and was innovating in this area well before most of the market understood the fundamental importance of wireless mobility management. Our patents are a core part of our innovative products, and are fundamental to the methods used for device management in the market today," said Rakesh Kushwaha.
"We ensured that our early innovations in device management were put through rigorous legal assessment by applying for patents on these innovations in the United States and abroad. Now these patented technologies are central to many critical mobile device management tasks being used by operators, service providers and enterprises around the world, including remote device configuration, lock/wipe and application management. With a total of 27 patents granted or pending, our IP portfolio will allow us to continue to shape the future of the Mobile Device Management market," added Kushwaha.
The ruling could not come at a nightmarish time for RIM as the company prepares to claw its way back into the market. Since 2011, the BlackBerry makers have seen sharp declines as customers switched to competitors such as Apple iPhones and Android Smartphones. Over 70% of the company's' shares have dropped in a year and a $518 million loss earlier this year. To add to RIM's ongoing woes, 5,000 staff will be laid off leaving its investors with big doubts on the company's future.
According to reports from Baird Equity Research, RIM developers are abandoning ship as the company struggles to keep high interest in its next BlackBerry 10 project. RIM denied the reports saying that the company's developers are well treated, loyal, and interest is high among RIM's BlackBerry App World vendor base.
"The other thing I hear consistently is that RIM simply treats developers better than anyone else in the mobile industry," wrote RIM's Head of Developer Relations, Alec Saunders. "To all new developers coming on board, we are building something amazing and we know you will be impressed by the open nature of our platform and our commitment to you. Welcome!"
Saunders added that RIM's vendor base increased by 157% to go along with the company's 3 billion downloads.
In an article, the RIM's CEO, Thorsten Heins wrote on The Globe and Mail, "As some pundits write RIM's obituary, the company's global subscriber base continues to grow, to more than 78 million people in 175 countries. In many of those countries - some of the fastest growing markets in the world - RIM is the top smartphone; and in some, RIM devices account for the top three spots," wrote Heins.
Despite the company's current legal predicament, hope remains in it next software release date. The number of planned changes and enhancements to the new BlackBerry OS seems positive in terms of innovation.