BUSINESS

RIM-Mformation Patent Lawsuit: Ruling Against BlackBerry Maker Overturned, Company Says

08/09/2012 03:05 EDT | Updated 10/08/2012 05:12 EDT
AP
Thorsten Heins, President and CEO of Research in Motion (RIM), speaks at the company's Annual General Meeting, less than two weeks after announcing disappointing financial results, deep job cuts and the latest delay in its BlackBerry 10 software, in Waterloo, Ontario, Tuesday, July 10, 2012. Analysts believe RIM is running out of time to turn itself around. Sales of the once-pioneering BlackBerry phones fell 41 percent in the latest quarter and likely won't pick up again until new phones come out next year. (AP Photo/The Canadian Press, Dave Chidley)
WATERLOO, Ont. - Research in Motion says a California judge has overturned a ruling on a patent-infringement case involving mobile device management company Mformation Technologies and vacated a US$147.2-million jury award.

"After considering motions presented by both parties as well as the jury verdict, the judge determined that RIM had not infringed on Mformation's patent," the company said early Thursday.

The BlackBerry-maker added that it is not required to make any payment to Mformation now.

Mformation still has the right to appeal the latest ruling. However, RIM (TSX:RIM) said, if Mformation successfully appeals the ruling, the jury verdict would not be reinstated and instead a new trial would occur.

In slapping the Waterloo, Ont.-based company with damages of $147.2 million last month, a jury determined that RIM infringed on patents owned by Mformation, based in Edison, N.J.

At the time, RIM denied any wrongdoing and on Thursday, praised the latest ruling.

"We appreciate the judge's careful consideration of this case. RIM did not infringe on Mformation's patent and we are pleased with this victory," said Steve Zipperstein, RIM's chief legal officer.

Mformation said in a news release that it was deeply disappointed by the decision. "We are assessing all legal options available to us and will determine the next steps shortly," said Todd DeLaughter, Mformation’s CEO.

_ By Abdul Latheef in Toronto.

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