Research in Motion Ltd. and Motorola Inc. settled a patent complaint Friday that Motorola had brought to the U.S. International Trade Commission earlier this year against RIM over mobile technology. Motorola had filed their complaint in January and requested the FTC to ban RIM from importing and marketing it’s phones that were violating its patent rights.
RIM will give Motorola an upfront payment and continue paying royalties for use of the mobile technology. Financial details were not given. The technology in question pertained to various wireless functions such as WiFi access, management of applications, the UI (user interface), and power management.
Apparently Motorola shares have climbed 20 cents which makes it 2.9%. RIM shares dropped 13 cents to $58.98.
The deal includes the agreement to cross license various patents which are related to industry wireless standards and wireless emails. And while both companies are rivals in the wireless industry, RIM has climbed to fourth largest cell phone maker in the first quarter as reported by the research of IDC.
Motorola has been struggling but now has its hopes on the newer handsets powered with the Android OS by Google Inc. It seems with all the competition, lawsuits have been abound. There’s Nokia suing Apple, Apple suing HTC, but maybe if they worked harder on putting that money into their technology instead of in courts fighting about it, we might see more results. I think RIM and Motorola took a creative approach by cross licensing various patents. You can be friendly rivals and still succeed.
[via: Chicago Breaking Business]