Palm Treo Comes Under Fire in New NTP Patent Lawsuit

Telecom News Editorials Reports Glossary

6:40 am on November 8, 2006 | Category: Business, Mobile Devices, Email, Law

Palm has come under a significant legal threat this week due to a patent lawsuit by NTP Inc., the same company that successfully sued Research In Motion for $612.5 million earlier this year.

The lawsuit alleges that the wireless email technology used in Palm Treo smartphones violates seven of NTP’s patents, five of which were used in the case against RIM. The new suit asks the court to prevent Palm from “continuing to infringe on NTP’s patents,” and seeks monetary damages for past infringements.

Palm executives have not yet commented on the lawsuit, but investors are hastily selling off the stock. The company’s shares dropped 7.6% on the NASDAQ yesterday, after the news was made public.

Oh well, so much for fair competition in the wireless email market. These patent sharks simply can’t grasp the idea of quitting while they still have a shred of dignity.