Research In Motion Essay

1450 words - 6 pages

Research In Motion (RIM) is a leading manufacturer and distributor of innovative wireless mobile devices that incorporate both email and voice solution for the mobile telecommunication market for the mobile communications market globally. The company was founded in 1984 in Waterloo, Ontario and had grown dramatically that included strategic opening of offices in North America, Europe, and Asia Pacific.

RIM business is focuses on integrated hardware development, software application and telecommunication products and services that support multiple wireless network standards. The company also provides platform and solution for seamless and integrated access to time-sensitive ...view middle of the document...

Some of the challenges that RIM faces dated back from 2001 through 2006 is the company’s involvement in a lawsuit with a patent-holding company called New Technology Products (NTP), which based in Virginia. What started off as a licensing issue that could have been resolved for a couple of million dollars turned into a five-year epic that finally concluded with a $612.5 million (USD) settlement? The settlement was made only after several appeals and the imminent threat of a ruling that was likely going to enforce an injunction against the BlackBerry that would shut down its U.S. based business accounting for 70 percent of the firms revenues.

RIM had experience a five years of continues legal battle against NTP for an intellectual property dispute and in an effort to put an end to this issue RIM executives made a commitment to resolve the legal dispute the soonest possible upon the realization that this would to the best interest of company and likewise this will mitigate possible losses of prospective customers and potential loss of revenues from being banned from doing business in the U.S.A..

Swiftly after coming to this decision Research In Motion Ltd. announces to the public back in March 03, 2006 that it has agreed to pay $612.5 million to NTP to finally put an end to this long standing battle. The agreement involves a one-time payment to NTP from which RIM is to receive a license to NTP's patents going forward. Also part of the court ruling even if the event that U.S. Patent and Trademark Office eventually overturn NTP's patents, NTP would not have to repay the $612.5 million as there was no provision for the PTO re-exam. This is a full and final settlement," from which RIM and NTP agreed to settle the case for $450 million March in of 2005, but that deal later fell through. RIM thought the companies had come to a final agreement, but NTP believed the matter had never been finalized, and the litigation continued.

2- What were some of the industry factors that influenced RIM?

Some industry factors that influence RIM success story is a result of number of power plays such us the securing of federal funding’s to making reciprocal investment, political maneuvering both in Canada and in U.S., good market entry timing of their products and services that secured their position leading to competitive edge in a multi-million industry. An evaluation of RIM's history opens a window into the dealings that made and shape such emerging businesses. RIM's actions and other industry such as telecommunication and information technology companies have continuously received scrutiny in the way they negotiated policy and funding dynamics within the mobile communication industry.

RIM flourished alongside the Canadian federal government's desire to establish the nation as premier global technology center at beginning of late-1990s, and further received a heightened media attention during the IP-lawsuit which...

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