Research In Motion
NASDAQ : RIMM
TSX : RIM

Research In Motion

October 07, 2005 13:30 ET

RIM Provides Update on NTP Litigation

WATERLOO, ONTARIO--(CCNMatthews - Oct. 7, 2005) - The U.S. Court of Appeals for the Federal Circuit ("Federal Circuit") issued a ruling today in the patent litigation between Research In Motion Limited ("RIM") (NASDAQ:RIMM)(TSX:RIM) and NTP, Inc. ("NTP"). The Federal Circuit denied RIM's petition to rehear the three-judge panel decision that was issued in this case on August 2, 2005.

That three-judge panel decision would reverse the District Court's ruling of infringement on 6 of the 16 claims, and would find that RIM does not infringe those 6 claims. That decision would also vacate the District Court's finding of infringement of an additional 3 of the 16 patent claims asserted against RIM in this case, because the District Court erred in construing their scope, and would remand to the District Court for further proceedings based on the new claim construction. The decision would affirm infringement of the remaining 7 claims of the NTP patents. But the decision would vacate the damages award and injunction originally entered by the District Court, and would remand the case for further proceedings.

All of the NTP patent claims have now been rejected by the U.S. Patent and Trademark Office ("Patent Office") in its initial rulings in reexamination proceedings, based in part on prior art not considered in the District Court trial in 2002.

The Federal Circuit's ruling today lets stand the three-judge panel decision of August 2, 2005. RIM now plans to seek review of that decision by the U.S. Supreme Court. While en banc review at the Federal Circuit or further review by the Supreme Court is generally uncommon, RIM continues to believe this case raises significant national and international issues warranting further appellate review. RIM will ask the Federal Circuit to stay further proceedings in the case until the Supreme Court decides whether it wants to review the critical issues presented by the Federal Circuit's decision. If the patent dispute returns to the District Court on remand proceedings, RIM expects the District Court will decide all matters relating to enforcement of the settlement agreement announced by the parties on March 16, 2005, as well as the impact of the Patent Office re-examinations of the NTP patents on the litigation proceedings. RIM expects that NTP will ask the court to enter an injunction prohibiting RIM from providing BlackBerry service and from using, selling, manufacturing or importing its handhelds and software in the United States. While RIM maintains that an injunction is inappropriate given the facts of the case and substantial doubts raised subsequent to trial as to the validity of the patents in question, it ultimately will be up to the Courts to decide these matters and there can never be an assurance of a favorable outcome in any litigation.

About Research In Motion

Research In Motion is a leading designer, manufacturer and marketer of innovative wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services that support multiple wireless network standards, RIM provides platforms and solutions for seamless access to time-sensitive information including email, phone, SMS messaging, Internet and intranet-based applications. RIM technology also enables a broad array of third party developers and manufacturers to enhance their products and services with wireless connectivity to data. RIM's portfolio of award-winning products, services and embedded technologies are used by thousands of organizations around the world and include the BlackBerry® wireless platform, the RIM Wireless Handheld™ product line, software development tools, radio-modems and software/hardware licensing agreements. Founded in 1984 and based in Waterloo, Ontario, RIM operates offices in North America, Europe and Asia Pacific. RIM is listed on the Nasdaq Stock Market (Nasdaq: RIMM) and the Toronto Stock Exchange (TSX: RIM). For more information, visit www.rim.com or www.blackberry.com.

The BlackBerry and RIM families of related marks, images and symbols are the exclusive properties and trademarks of Research In Motion Limited. RIM, Research In Motion and BlackBerry are registered with the U.S. Patent and Trademark Office and may be pending or registered in other countries. All other brands, product names, company names, trademarks and service marks are the properties of their respective owners.

This news release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 relating to RIM's plans and expectations regarding its dispute with NTP. Forward-looking statements are based on estimates and assumptions made by RIM in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that RIM believes are appropriate in the circumstances. Such forward-looking statements are subject to a number of risks and uncertainties, including, in particular, the inherent uncertainty regarding the outcome of any litigation, and the risks and uncertainties and potential outcomes that are described in the risk factor titled "The Company May Infringe on the Intellectual Property Rights of Others" in the "Risk Factors" section of RIM's Annual Information Form for fiscal 2005, which is included in its Annual Report on Form 40-F for fiscal 2005 (copies of which filings may be obtained at www.sedar.com or www.sec.gov). These factors should be considered carefully, and readers should not place undue reliance on RIM's forward-looking statements. RIM has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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