Motorola and Research in Motion (RIM), two of the largest telecommunications and mobile communications companies in the world, have finally agreed on a settlement over their heated dispute regarding the patents of wireless technologies. The settlement terms included that both companies will have a cross-licensing agreement and patent transferring over technologies which involved cellular data, Wi-Fi, and email.
Both companies will receive patent rights to the key wireless technologies like:
• 802.11, and
• Wireless e-mail.
They will transfer the patent rights directly to each other. RIM may have been the one who yielded to the deal since they were also made to pay an upfront settlement fee and certain ongoing royalty fees to Motorola. Other details of the agreement were not disclosed but it assured that the agreement settles everything and ends all the litigation between the two companies.
The dispute between them started and became official just this year when Motorola, the Android friendly company, filed a case with the US International Trade Commission on RIM’s alleged infringement on five of Motorola’s patents.
The lawsuit also accused RIM of stalling deliberately on purpose and threatening a ban on Blackberry phones’ trading operations to force a deal. The Blackberry phone is one of RIM’s main products. Motorola also asked the ITC to ban the imports of the Blackberry phones into the US as a penalty to RIM.
As a response to the lawsuit, RIM in turn sued Motorola for cheating or rather gouging on its patents related to basic Smartphone technology. The Canadian firm RIM was previously accused of a similar patent case last February but was victorious when it was found not to have violated a single patent. However, it seems that they have not escaped the similar patent related issues.
The patents included in the dispute were related to technologies like Wi-Fi, application management, power management, and user interface. According to Motorola, RIM once had license to use such technologies but the licensing deals ended last 2007.
RIM also has another complaint with the ITC where Eastman Kodak alleged that RIM and Apple infringed on their patent which was related to technology of digital imaging. The ITC is currently investigating such allegations by Kodak.
Both companies refused to provide the financial terms of the settlement but these kinds of deals usually involve large amounts in dozens or even hundreds of millions of dollars.