Blackberry 2010 Annual Report Download - page 46

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The patent is generally related to touch screen control of radio stations. The Company and Media Digital
settled on January 27, 2010 for an amount immaterial to the Consolidated Financial Statements.
On November 23, 2009, Klausner Technologies Inc. filed a lawsuit against the Company and Motorola in the
United States District Court for the ED of Texas alleging infringement of U.S. Patent Nos. 5,572,576 and 5,283,818.
The patents are generally directed to visual voice mail. The complaint seeks an injunction and money
damages. Klausner served RIM on March 23, 2010. Proceedings are ongoing.
On March 1, 2010, Uniloc USA, Inc. and Uniloc Private Limited (“Uniloc”) filed a lawsuit against Alt-N
Technologies Ltd. (a subsidiary of RIM Limited) and 13 other defendants in the United States District Court for
the ED of Texas alleging infringement of U.S. Patent No. 5,490,216. The patent is generally directed to video
compression and decompression. The complaint seeks an injunction and money damages. Proceedings are
ongoing.
On March 3, 2010, Smartphone Technologies LLC filed a lawsuit against the Company and 12 other defendants
in the United States District Court for the ED of Texas alleging infringement of U.S. Patent Nos. 6,950,645;
7,076,275; 5,742,905; 7,506.064; 6,533,342; 6,711,609 and RE40,459. The patents are generally directed to device
power management, telephonic networking, and synchronization. The complaint seeks an injunction and
money damages. Proceedings are ongoing.
On March 15, 2010, Video Enhancement Solutions LLC filed a lawsuit against Research In Motion Limited and 8
other defendants in the United States District Court for the Northern District of Georgia (Atlanta Division)
alleging infringement of U.S. Patent No. 7,397,965 and U.S. Patent No. 7,492,960. The patents are generally
directed to video compression and decompression. The complaint seeks an injunction and money damages.
Proceedings are ongoing.
On March 26, 2010, the PACid Group LLC filed a lawsuit against Research In Motion Limited, Research In Motion
Corporation and 30 other defendants in the United States District Court for the Eastern District of Texas (Tyler
Division) alleging infringement of U.S. Patent Nos. 5,963,646 and 6,049,612. The patents are generally directed
to encryption key generation and file encryption. The complaint seeks an injunction and money damages.
Proceedings are ongoing.
On March 31, 2010, MobileMedia Ideas LLC filed a lawsuit against Research In Motion Limited and Research In
Motion Corporation in the United States District Court for the Eastern District of Texas (Marshall Division)
alleging infringement of U.S. Patent Nos. 5,479,476; 5,845,219; 6,055,439; 6,253,075; 6,427,078; RE.39231; 5,732,390;
5,737,394; 6,070,068; 6,389,301; 6,446,080; and 7,349,012. The patents are generally directed to mobile telephone
technologies including mobile telephone user interfaces, call control, speech signal transmission and imaging.
The complaint seeks an injunction and money damages. Proceedings are ongoing.
OSC Settlement
As described above, as part of the Settlement Agreement, the Company agreed to enter into an agreement
with an independent consultant to conduct a comprehensive examination and review of the Company and
report to the Board and the staff of the OSC on the Company’s governance practices and procedures and its
internal control over financial reporting. The Company retained Protiviti to carry out this engagement. See
“Independent Governance Assessment” and Appendix A to this MD&A for a further description of Protiviti’s
engagement, its recommendations and the Company’s responses to such recommendations. A copy of
Protiviti’s recommendations will also appear on the website of the OSC.
Market Risk of Financial Instruments
The Company is engaged in operating and financing activities that generate risk in three primary areas:
Foreign Exchange
The Company is exposed to foreign exchange risk as a result of transactions in currencies other than its
functional currency, the U.S. dollar. The majority of the Company’s revenues in fiscal 2010 are transacted in
U.S. dollars. Portions of the revenues are denominated in Canadian dollars, Euros and British Pounds.
Purchases of raw materials are primarily transacted in U.S. dollars. Other expenses, consisting of the majority
of salaries, certain operating costs and manufacturing overhead are incurred primarily in Canadian dollars. At
February 27, 2010, approximately 38% of cash and cash equivalents, 22% of accounts receivables and 7% of
accounts payable are denominated in foreign currencies (February 28, 2009 — 36%, 26% and 4%, respectively).
These foreign currencies primarily include the Canadian dollar, Euro and British Pound. As part of its risk
management strategy, the Company maintains net monetary asset and/or liability balances in foreign
MD&A
38