Originally Posted by CyberJack
DeGodefroi: The downside of this, is that the papers are saying this is immaterial to the current court action. Until the Patents have been dissolved they have to treat them as if they have legal standing, and NTP has appealed those that have been dismissed. Don't get me wrong I am hoping this end soon and for RIM, but this seems to be the reality.
10/26 2:50P (DJ) =DJ UPDATE: High Court Denies RIM's Emergency Stay Request
By Mark H. Anderson and Stuart Weinberg
Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--Research In Motion Ltd. (RIMM) Wednesday failed to
get an emergency stay request at the U.S. Supreme Court to freeze lower court
proceedings in a patent dispute between it and NTP, a Virginia patent holding
company, over BlackBerry wireless email devices.
Investor reaction to the decision - issued by Chief Justice John Roberts Jr.
without comment - was swift, with RIM shares falling sharply before being
halted at 1:19 p.m. EDT. On Nasdaq, RIM had shed $3.19, or 6.3% to $53.74 on
volume of 5.85 million shares. Shares recently recovered somewhat and are down
62 cents at $56.78. The stock has been battered since the U.S. Court of
Appeals for the Federal Circuit denied RIM's request for an en banc hearing.
The decline is fueled by concerns that the District Court will re-issue an
injunction on U.S. BlackBerry sales, a devastating blow to RIM should it
occur, before the Supreme Court acts on a regular appeal RIM plans to file.
NTP, in its own documents filed with the Supreme Court, downplayed the
chance that might occur.
"As for the threat of any injunction, as previous settlement discussions
show, NTP is a reasonable business entity that is willing to resolve the
dispute between the parties and provide for complete 'global peace' going
forward," attorneys for NTP said. The company also noted there is "ample time
for RIM to file its petition for certiorari before any further action by the
In a press release, RIM said Wednesday's decision by the Supreme Court does
not mean the court has declined RIM's appeal for further review. "The Supreme
Court merely decided that it would follow its normal course of allowing the
District Court to decide whether and to what extent to continue the litigation
in light of all the relevant circumstances, including the prospect that the
Supreme Court may decide to hear the case," RIM said.
The company said that during upcoming proceedings it will ask the District
Court to decide whether to enforce the "binding term sheet" signed by the two
companies in March. RIM said it will also ask the court to determine the
impact of the U.S. Patent and Trademark Office's ongoing review of the five
NTP patents at the center of the dispute. The patent office has rejected all
claims in all five patents in a preliminary review.
James Wallace, lawyer for NTP, said a status and scheduling conference is
set for the morning of Nov. 9 at the District Court. NTP will take the
position that there is time for RIM to file its request for review to the
Supreme Court before Judge Spencer rules on an injunction.
NTP, for its part, said in a press release it will press ahead in lower
court proceedings "for re-confirmation of its previously-entered injunction
that prohibits RIM from selling, using, or importing into the U.S. infringing
BlackBerry hardware and software."
RIM, Waterloo, Ontario, has been engaged in a bitter fight with NTP for more
than four years over the technology in the popular Blackberry wireless email
NTP sued in 2001, saying the company had violated several of its patents
with the BlackBerry product. A trial in a Virginia U.S. District Court
resulted in a jury verdict against Research In Motion over five patents in
In its appeals, RIM has argued - so far unsuccessfully - that U.S. patent
laws don't apply to it because the company operates in Canada. The pending
Supreme Court appeal follows a series of setbacks at the Federal Circuit,
which most recently denied an emergency petition from the company last week.
RIM, in the emergency appeal, said its business would be "irreparably
harmed" if a lower court is free to issue an injunction before the Supreme
Court reviews its appeal. "Research In Motion would suffer substantial revenue
and profit losses," lawyers for the company said in the appeal.
Chief Justice Roberts handles emergency requests for cases out of the
Washington-based Federal U.S. Circuit Court of Appeals, which reviewed the
case on appeal because it dealt with patent law. RIM could refile its request
with another justice, but such a move isn't likely to change the outcome of
the emergency stay request.
RIM has until Jan. 7, 2006, to file its request for review to the Supreme
Court. Some legal experts believe Spencer is unlikely to rule on an injunction
before the high court makes its decision on whether to review the case.
Experts also say that Spencer's decision may also take into account the fact
that NTP doesn't make any products.
That's because the U.S. Congress is considering legislation on whether an
injunction should be granted to patent holders that don't make products, he
said. Normally, patent holders are granted injunctions when their patents are
infringed. However, the proliferation of patent trolls, companies that own
patents and try to assert them even though they don't use the patents to make
products, has led Congress to review the use of injunctions.
Still, James Hurt, lawyer at Chicago-based Winston & Strawn LLP, said he
believes Spencer could issue the injunction ahead of the Supreme Court's
decision. "The District Court has discretion to issue injunctions, despite the
fact that one party is seeking review with the Supreme Court," he said.
Hurst said the Supreme Court "almost never" takes patent cases. He said
that, if District Courts were required to wait for high court decisions on
reviews before issuing injunctions, everyone would try to delay injunctions by
seeking Supreme Court reviews.
-Mark H. Anderson, Dow Jones Newswires; 202-862-9254;
, in Washington.
-Stuart Weinberg, Dow Jones Newswires; 416-306-2026;
, in Toronto.
(END) Dow Jones Newswires