Supreme Court Refuses to Hear BlackBerry Case

The Supreme Court officially refuses to hear an appeal in an ongoing battle that threatens to shut down BlackBerry wireless e-mail service in the United States.

The Supreme Court Monday officially refused to hear an appeal in an ongoing battle that threatens to shut down BlackBerry wireless e-mail service in the United States.

The refusal marked the latest in a series of setbacks for Research in Motion since holding company NTP sued the BlackBerry maker for alleged patent infringement in 2001.

U.S. District Judge James Spencer ruled in favor of NTP in 2003, instructing RIM to halt its sales of BlackBerry devices and services in the United States until NTPs patents run out in 2012. Spencer stayed the ruling, however, pending appeal. Since then, the case has gone through several appeals and failed settlement attempts.

RIM officials said they knew that trying to get the Supreme Court to hear its case was a long shot.

"RIM has consistently acknowledged that Supreme Court review is granted in only a small percentage of cases, and we were not banking on Supreme Court review," said Mark Guibert, vice president of marketing at RIM.

In the meantime, the U.S. Patent and Trademark Office has been evaluating the validity of NTPs patents; the office initially rejected NTPs claims in March, and it has been re-evaluating them for months. The USPTO has indicated that it intends to reject all of NTPs claims eventually, in which the case will be null and void. Industry experts say the process could take several months, though.

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"Despite the patent offices dedicated re-exam group, I would expect that [a ruling by the Board of Patent Appeals and Interferences]—the final agency decision—will not occur in this case until around October," said Stephen Maebius, an attorney at Foley & Lardner LLP, in Washington, who worked at the USPTO in the early 1990s.

To that end, Spencer has said that he does not intend to wait for the USPTO to make final decisions on the disputed patents, although he has yet to issue an injunction.

RIM maintains that the company has tested and readied a legal technical workaround solution that would let the company continue offering its mobile e-mail service even if the judge goes through with an injunction before the patent office makes its ruling.

The company has been vague on details. But in an earnings call late last month, RIM Chairman and co-CEO Jim Balsillie, in Waterloo, Ontario, said the company will reveal details of a workaround "very soon" that it could ship latent in future products and that the workaround is "different at the absolute fundamental aspect," meaning it will not violate any of NTPs patents.

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