RIM Slips Out of $142.7 Million Patent Fine in Appeals Court

Paul Lilly

Research In Motion (RIM) managed to escape from having to pay a hefty patent infringement fine when the U.S. District Court for the Northern District of California overturned an earlier verdict that would have had the company pay $147.2 million in damages to Mformation, a software company that deals with mobile device management. According to the presiding judge, there wasn't enough evidence to support the jury's findings of patent infringement.

"We appreciate the Judge's careful consideration of this case. RIM did not infringe on Mformation's patent and we are pleased with this victory," said Steve Zipperstein , RIM's Chief Legal Officer. "The purpose of the patent system is to encourage innovation, but the system is still too often exploited in pursuit of other goals. Many policy makers have already recognized the need to address this problem and we call on others to join them as this case clearly highlights the significant need for continuing policy reform to help reduce the amount of resources wasted on unwarranted patent litigation."

Mformation has the right to appeal the case, and if it does, there will be a brand new trial. At issue are two patents Mformation holds and in which it believes RIM infringes on with its BlackBerry Enterprise Server software, which enables companies to manage employee devices remotely.

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