Just like in many fairy tales, the main character often faces certain hardships. However, the prospect of BlackBerry ceasing operations is enough to raise concerns among many.
In 1984, Mike Lazaridis, a student at the University of Waterloo in Canada, opened a wireless technology store named “Research in Motion” (RIM), but it did not make a significant impact initially. In 1998, the company experienced a remarkable breakthrough with the launch of the BlackBerry 950, a device no larger than a deck of playing cards that featured two-way messaging capabilities. But it didn’t just send messages; it was equipped with email functionality, allowing for quick business communication.
Their revenue for the fiscal year 2005 reached $1.35 billion.
In 2001, a Canadian company named NTP sued RIM for allegedly stealing a patented technology used in BlackBerry, leading to numerous court battles between the two companies. In May 2005, RIM and NTP announced they had reached a final settlement: RIM would pay NTP $450 million. However, just a month later, these negotiations fell through.
Last week, RIM acknowledged that the number of BlackBerry service subscribers had dropped more than expected, blaming delays in the launch of new models, including the BlackBerry 8700 and BlackBerry 7130. “RIM seems reluctant for people to mention this issue; instead, they revealed some information about a new system,” commented Kenneth Hyers, an analyst at ABI Research in the U.S.
However, representatives from NTP stated that if they succeed in terminating BlackBerry services but RIM continues operations based on new software, they will demand an inspection of this transition.
NTP is currently requesting the Virginia court in the U.S. to block BlackBerry services in the country, except for government and relief organizations. Nevertheless, most analysts expect the matter to be resolved outside of court, with compensation ranging from $700 million to $1.5 billion. This is a substantial amount for a copyright dispute. It is also estimated that RIM has garnered at least $1.8 billion in cash since launching the first BlackBerry product in 1998.
This week, RIM unexpectedly scored a small but significant victory when the U.S. Patent and Trademark Office asserted that the allegations against RIM for copyright infringement were no longer valid. A final decision has yet to be made, and this office may also shift its support to NTP. However, this is still good news for RIM.
Currently, there are approximately 3.65 million BlackBerry users worldwide. Observers assert that if someone only needs to make calls and send emails, no product can surpass this device.
