Blackberry 2005 Annual Report Download - page 64

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12. Commitments and Contingencies
(a) Lease commitments
The Company is committed to future minimum annual lease payments under operating leases as follows:
Real Estate Equipment Total
For the year ending
2006 $3,205 $ 285 $ 3,490
2007 2,638 228 2,866
2008 2,077 152 2,229
2009 1,483 7 1,490
2010 1,534 – 1,534
Thereafter 6,164 – 6,164
$17,101 $ 672 $ 17,773
For the year ended February 26, 2005, the Company incurred rental expense of $3,023 (February 28, 2004 –
$2,197; March 1, 2003 – $2,272).
(b) Other litigation
RIM received a letter in the first quarter of fiscal 2004 wherein Inpro II Licensing S.à.r.l. (“Inpro”) suggested
that RIM may require a license of two patents held by Inpro (the “Inpro Patents”). On October 31, 2003,
following a thorough review of the Inpro Patents, RIM filed a declaratory judgment action against Inpro in
the U.S. District Court for the Northern District of Texas, Dallas Division (the “Texas Action”), in which RIM
sought a ruling that the Inpro Patents are invalid and/or not infringed by RIM. In November 2003, Inpro filed
an action in the U.S. District Court for the District of Delaware (the “Delaware Action”) against RIM and one
of its customers asserting infringement of one of the Inpro Patents which, in very general terms, relates to
electronic devices having user-operable input means such as a thumb wheel. Inpro sought a preliminary and
permanent injunction and an unspecified amount of damages. The parties stipulated to a Final Judgement,
which was issued December 28, 2004 dismissing the Delaware Action on the basis that RIM and its customer
do not infringe on the Inpro Patent-in-suit. On January 21, 2005, Inpro filed a Notice of Appeal in relation to
the Delaware Action to the Court of Appeals for the Federal Circuit in Washington DC which remains pending.
The Company amended its Complaint in the Texas Action to withdraw issues relating to the Inpro Patent-in-suit
in the Delaware Action. On March 18, 2005, Inpro’s motion to dismiss the Texas Action on procedural grounds
was granted for lack of personal jurisdiction of Inpro in the State of Texas. At this time, the likelihood of
damages or recoveries and the ultimate amounts, if any, with respect to all of the Inpro actions is not
determinable. Accordingly, no amount has been recorded in these consolidated financial statements as
at February 26, 2005.
On March 22, 2005 a complaint was filed on behalf of the Board of Regents of the University Of Texas System
(“UT”) in the United States District Court for the Western District of Texas, Austin Division, against RIM (and its
U.S. subsidiary), along with 17 other Defendants, alleging infringement of United States Patent No. 4,674,112
(the “UT Patent”). The UT Patent, titled “Character Pattern Recognition and Communications Apparatus”,
was filed on September 6, 1985 and has an expiration date of September 6, 2005. The complaint alleges that
RIM’s 7100t handheld products sold in the United States infringe the UT Patent. UT is seeking unspecified
damages and temporary and permanent injunctive relief against all Defendants, including RIM. At this time,
the likelihood of damages or recoveries and the ultimate amounts, if any, with respect to the UT action is
not determinable. Accordingly, no amount has been recorded in these consolidated financial statements as
at February 26, 2005.
Research In Motion Limited •Incorporated Under the Laws of Ontario (In thousands of United States dollars, except per share data, and except as otherwise indicated)