Weighing in on the Blackberry debate
Four years of patent litigation are coming to a close and the topic of conversation at every corporate water cooler seems to be the same…are they going to shut down my blackberry?! For those who haven’t been following this story over the last few years, a company called NTP sued Research in Motion (RIM), the maker of the everpopular blackberry device, alleging patent infringement. What makes this story so compelling (and frightening to some) is that NTP has asked for an injunction that would effectively result in a blackout of virtually all blackberry service. What’s more, the federal judge handling the case has indicated that he may be inclined to grant it by Christmas.
As noted in a recent Fortune article, this case highlights the ongoing dispute regarding the propriety of injunctions in patent cases. In most instances, courts grant permanent injunctions only when a plaintiff faces "irreparable harm" beyond what can be remedied by money damages. However, the Court of Appeals for the Federal Circuit, which handles all patent appeals, has consistently held that almost any victorious patent plaintiff meets this standard. Accordingly, a patent plaintiff like NTP has tremendous leverage in that it can demand not just royalties, but that any technology which incorporates it patent be shut down. The result…any settlement (to the extent that one can be reached) could reach upwards of ten figures.
Not surprisingly, this is an extremely polarizing issue and one that is likely to end up before the Supreme Court at some point. Advocates of the current regime argue that the exclusivity inherent to a patent necessitates that injunctive relief be automatically available in cases where infringement is proved. Others point to the blackberry debacle and counter that the standard for injunctive relief in patent cases should be heightened and that royalties may be the more appropriate remedy in many cases. Regardless of how the debate shakes out in the long term, one this is certain, thousands of travelers will be furtively sneaking glances at their blackberry this Christmas in the hope that that their little pocket companion will still be ticking.