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Research In Motion Faces ITC Patent Infringement Complaint

6:15 pm on December 3, 2009 | Category: Business, Cell Phones, Law, Mobile Devices

Research In Motion shares lost more than 2% today on the Toronto Stock Exchange, after Nebraska-based Prism Technologies LLC filed a patent infringement complaint against the BlackBerry manufacturer.

Prism filed its complaint with the U.S. International Trade Commission (ITC), alleging that Research In Motion’s smartphones, software, and servers infringe on a patent for an authentication system for data transmitted over the internet. In particular, Prism singled out RIM’s BlackBerry Curve 8330, which was the best-selling consumer smartphone in the U.S. last quarter, according to NPD Group.

The ITC does not have the authority to award damages or patent royalties, but can block an imported product from entering the U.S. if it determines that an unfair trade practice, such as patent infringement, has occurred.

Complaining to the ITC could be Prism’s way of forcing RIM into a cash settlement, according to American trade lawyer, Lyle Vander Schaaf. “It’s not really the damages that force you to settle; itâ€™s the threat [of an import ban],” Vander Schaaf explained.

Research In Motion will reportedly fight Prism’s claim, although the company has officially declined to comment on the litigation.

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