The ongoing patent battle between Research in Motion and Visto has finally come to a close with RIM agreeing to pay Visto $267.5 million for a license on all Visto patents and the transfer of certain Visto intellectual property. The settlement is expected to be completed next week.
RIM expects the majority of the settlement payment to be classified as an unusual item and expensed in the second quarter of fiscal 2010. The rest will be classified as an intangible asset.
This settlement puts an end to the long-standing dispute between RIM and Visto, in which Visto claimed that RIM had infringed on five of its wireless-synchronization patents. UBS Equity Research views the settlement as a positive development for RIM because it gives RIM a perpetual license to Visto's IP and adds to RIM's own IP portfolio. In addition, the settlement puts an end to the ongoing litigation with Visto and could reduce RIM's legal costs.
The news comes three years after RIM agreed to a similar settlement with patent-holding company NTP for $612.5 million.
- see this press release
RIM gets stay in Visto case
RIM countersues Visto
Microsoft settles up with Visto
RIM, NTP settle... Finally