Boston.com THIS STORY HAS BEEN FORMATTED FOR EASY PRINTING

BlackBerry maker dealt blow in case

Judge hits patent settlement plan

WASHINGTON -- BlackBerry maker Research In Motion Ltd. was dealt another legal setback in a key patent infringement case yesterday, increasing the risks it may have to pay more to settle the claim or shut down its US mobile e-mail service.

US District Judge James Spencer rejected RIM's request to delay the case and refused to force patent holder NTP Inc. to accept $450 million from RIM as settlement of NTP's patent action.

''Valid patents would be rendered meaningless if an infringing party were allowed to circumvent the patents' enforcement by incessantly delaying and prolonging court proceedings, which have already resulted in a finding of infringement," Spencer said in his ruling from Richmond.

Spencer said he would request briefs and set a hearing date to deal with NTP's request for damages against RIM and an injunction that would halt US sales of the BlackBerry and shut its service.

RIM shares were halted before the ruling was issued, then fell up to 7.9 percent after reopening. They closed down 5.8 percent to $61.13 on Nasdaq.

RIM said in a statement it would continue efforts to get the Supreme Court to review the case. The Supreme Court on Monday agreed to review a similar case involving online auctioneer eBay Inc. and patent holder MercExchange, and take up the broad question of when it is appropriate to grant an injunction against a patent infringer.

In its statement, RIM also reiterated that it has prepared a software upgrade that can be used to work around the disputed patents. 

© Copyright 2006 The New York Times Company