Patent Decision Causes Surge in RIM Stock Price

5:30 am on February 2, 2006 | Category: Business, Mobile Devices

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A favorable decision yesterday in the patent case against NTP might signal a light at the end of the tunnel for Research in Motion’s legal, but experts agree that they aren’t out of danger just yet.

As expected, the US Patent and Trademark Office issued a “non-final” rejection of a key patent that NTP is using in its case. The small intellectual property still has 30 days to appeal this ruling before it becomes final.

Although this sets the odds more in RIM’s favor, the judge of the ongoing case reserves the right to ignore this move by the patent office at the next official hearing on February 24.

“We believe the U.S. Federal Circuit Court decision possibly on Feb. 24 has greater implications for Research in Motion’s ability to offer BlackBerry service in the U.S. market or the need to reach a settlement with NTP,” said S&P Equity Research analyst, Kenneth Leon in a recent report.

Leon is positive about the company’s prospects, however, reiterating a “buy” recommendation on the stock. Many investors appear to be sharing this positive attitude, with RIM increasing by 8.74% yesterday on the TSX, closing at C$84.00.

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    Published by TeleClick Enterprises
    Edited by Jeremy Maddock