Blackberry 2008 Annual Report Download - page 76

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RESEARCH IN MOTION LIMITED
notes to the consolidated financial statements continued
In thousands of United States dollars, except share and per share data, and except as otherwise indicated
counterclaims filed on July 5, 2006 (against the RIM Patents,
US 6,389,457 and 6,219,694) from the Northern District of Texas
Court to the Eastern District of Texas Court was granted on
May 17, 2007. All of RIM’s and Visto’s claims and counterclaims
filed in the Northern District of Texas will now be heard in the
Eastern District of Texas case. As of September 21, 2007, the
United States Patent & Trademark Office (“PTO”) has issued
office actions in re-examination proceedings, rejecting all
claims of each of the five patents asserted against RIM in the
patent infringement action filed by Visto in the Eastern District
of Texas against RIM on April 28, 2006. On March 14, 2008 the
PTO issued final office actions rejecting all the claims of the
7,039,679, 6,151,606 patents and the majority of the claims of
the 6,085,192 patent. A claim construction hearing was held on
November 1, 2007, in the Eastern District of Texas action. The
Magistrate assigned to handle the claim construction hearing
granted leave to both RIM and Visto to file supplemental briefs
based on Visto’s response to the re-examination proceedings
before the PTO. Proceedings are currently pending. At this
time, the likelihood of damages or recoveries and the ultimate
amounts, if any, with respect to the litigation (or any related
litigation) is not determinable. Accordingly, no amount has
been recorded in these consolidated financial statements as at
March 1, 2008.
On August 28, 2007, Visto filed a new complaint in the
United States Court for the Eastern District of Texas, Marshall
Division, against the Company alleging infringement of two
United States Patents (United States Patent No. 5,857,201 and
6,324,542). On October 18, 2007, RIM filed its answer to Visto’s
complaint in the Eastern District of Texas. On January 8, 2008,
Visto filed an amended complaint adding United States Patent
No. 5,968,131. On January 29, 2008, RIM filed an answer to the
amended complaint. Proceedings are currently pending.
On June 15, 2007, RIM filed in the United States District
Court for the Northern District of California a complaint against
Visto for infringement of U.S. Patent No. 5,889,839, which is
owned by RIM. On July 9, 2007, Visto filed its answer to RIM’s
complaint asserting defences based on non-infringement,
invalidity and unenforceability. On August 29, 2007, Visto filed
a motion to amend Visto’s answer and add counterclaims of
infringement by RIM of United States patents No. 7,255,231
and 7,228,383 in the Northern District of California case. On
February 28, 2008, the California Court granted RIM’s request
to stay Visto’s counterclaims of infringement of the ‘231 and
‘383 patents pending their re-examination by the USPTO while
allowing RIM to proceed on its patent infringement claim
against Visto. Proceedings are currently pending.
has appealed the Munich court’s decision and an appeal will
not be heard until some time in 2008. On March 21, 2006, the
Düsseldorf court stayed the infringement action until a final
decision on validity has been made. At this time, the likelihood
of damages or recoveries and the ultimate amounts, if any,
with respect to the Litigation (or any related litigation) is not
determinable. Accordingly, no amount has been recorded in
these consolidated financial statements as at March 1, 2008.
On May 1, 2006, Visto Corporation (“Visto”) filed a
complaint in the United States District Court for the Eastern
District of Texas, Marshall Division (the “Marshall District
Court”), against the Company alleging infringement of
four patents (United States Patent No. 6,023,708, 6,085,192,
6,151,606 and 6,708,221) and seeking an injunction and
monetary damages. On May 1, 2006, RIM filed a declaratory
judgment complaint against Visto in the United States
District Court for the Northern District of Texas (Dallas
Division) (the “Dallas District Court”) alleging that the Visto
6,085,192, 6,151,606, and 6,708,221 patents are invalid and/
or not infringed. RIM filed an amended declaratory judgment
complaint in the Dallas District Court on May 12, 2006 adding
claims against Visto for infringement of United States Patent
No. 6,389,457 and 6,219,694, which are owned by RIM. Visto
responded to RIM’s amended complaint on July 5, 2006 by
filing declaratory judgment claims in the Dallas District Court
that the RIM 6,389,457 and 6,219,694 patents are invalid and/
or not infringed. On June 16, 2006, RIM filed a declaratory
judgment complaint against Visto in the Dallas District Court
alleging that Patent No. 7,039,679 is invalid and/or not infringed
The declaratory judgment filed by RIM in the Dallas District
Court against Visto’s United States Patents No. 6,085,192,
6,151,606 and 6,708,221 has been dismissed. This will proceed
as part of the Visto suit in the Eastern District of Texas. The
RIM complaint filed in the Dallas District Court against Visto
for infringement of RIM’s United States Patent No. 6,389,457
and 6,219,694 was consolidated with the declaratory judgment
action filed by RIM against Visto’s patent No. 7,039,679 into
one case. RIM’s complaint filed against Visto for infringement
of RIM’s United States Patent No. 6,389,457 and 6,219,694
(consolidated with the declaratory judgment filed by RIM
against Visto patent No, 7,039,679) was dismissed to allow
RIM to re-file those complaints in the Marshall District Court.
RIM’s motion to amend its response to add an infringement
claim under the RIM ‘457 and ‘694 patents, along with a
declaratory judgment complaint against Visto patent 7,039,679,
to the Marshall District Court action was granted on March 6,
2007. RIM’s motion to transfer Visto’s declaratory judgment