RIM, the maker of the highly declining Blackberry smartphone range, has today lost a major patents battle with Nokia. RIM will have to do one of two rather major things for the company to sort the patents problems out!
In a statement Nokia had this to say about their patent win
Nokia and RIM agreed a cross-license for standards essential cellular patents in 2003, which was amended in 2008. In 2011, RIM sought arbitration, arguing that the license extended beyond cellular essentials. In November, the arbitration tribunal ruled against RIM. It found that RIM was in breach of contract and is not entitled to manufacture or sell WLAN products without first agreeing royalties with Nokia. In order to enforce the Tribunal’s ruling, we have now filed actions in the US, UK and Canada with the aim of ending RIM’s breach of contract.
1. Pay up
The logical decision for RIM to do is pay up the patents loss, but being a company already struggling and losing shares faster than anyone in the Smartphone world, it sure isn’t going to help RIM at all. Once the case has been paid off it won’t simply be game over for the patent war, RIM and Nokia will likely have to create a new cross-license deal for the standard as they did back in 2003.
This will also hurt RIM as they will likely have troubles with FCC over the Wi-Fi standard in the upcoming Blackberry 10.
2. Remove WiFi from ALL Blackberrys Current and Future
The consequence of doing nothing for RIM could be incredibly painful for the company and their already declining user base, RIM actually has a weedy 1.6% US marketshare and facing losses sharply in Europe too.
Due to the patent loss, RIM would have to remove Wi-FI from every Blackberry their is, whilst I highly doubt existing users would install an update that would remove WiFi, or find a way around it, it would be one of the most painful losses for the platform and would pretty much end the company for business use and the rather low cost market they have started to rely on.