Blackberry 2013 Annual Report Download - page 219

Research In Motion Limited
Management’s Discussion and Analysis of Financial Condition and Results of Operations
processing in digital cameras. On October 31, 2011, the court held a hearing to address summary judgment motions filed by both
sides. On March 26, 2012, the court granted the defendants’ motion for summary judgment. On April 20, 2012, St. Clair filed a notice
of appeal. On May 16, 2012, the Company filed a motion to dismiss the appeal because it was filed prior to dismissal of the district
court action. The court issued a mandate on August 3, 2012, dismissing the appeal as premature. On Friday, September 7, 2012, St.
Clair re-filed its notice of appeal. Proceedings are ongoing.
On November 16, 2010, St. Clair filed a second complaint against the Company and other defendants in the District of Delaware. The
patents in suit include U.S. Patent Nos. 5,630,163; 5,710,929; 5,758,175; 5,892,959; 6,079,025 and 5,822,610. These patents are
generally directed to power management. The Complaint seeks an injunction and money damages. The court held a claim
construction hearing on December 16, 2011. On October 12, 2012, the court stayed the case pending final judgment in a case St. Clair
brought against other parties. No trial date is currently set. Proceedings are ongoing.
On October 31, 2008, Mformation Technologies, Inc. (“Mformation”) filed a patent infringement lawsuit against the Company in the
U.S. District Court for the Northern District of California. The patents in suit include U.S. Patent Nos. 6,970,917 and
7,343,408. These patents are generally directed to remote device management functionality. A claim construction hearing was held on
November 20, 2009. On February 26, 2010, the court issued a claim construction order. A trial date was set for September 2011, but
then later vacated. On August 31, 2011, the court requested additional claim construction briefings. The court held a hearing on
September 26, 2011 for oral argument on the additional claim construction as well as motions for summary judgment and then took
the issues under advisement. On December 19, 2011, the court issued an order on the parties’ summary judgment motions and the
additional claim construction. Jury selection was completed on June 14, 2012, and trial began on June 19, 2012. On July 13, 2012, the
j
ury found that the Company had infringed the asserted patent claims, awarding damages of $147.2 million. On August 8, 2012,
Judge Ware overturned the jury verdict and granted judgment of non-infringement as a matter of law. On Sep. 5, 2012, Mformation
filed a motion for a new trial. On September 6, 2012, Mformation filed a notice of appeal to the US Court of Appeals for the Federal
Circuit. However, the Federal Circuit deactivated the appeal while the motion for new trial was pending. On September 20, 2012, the
case was reassigned to Judge Edward M. Chen, in view of Judge Ware’s retirement from the bench. Judge Chen subsequently denied
Mformation’s motion for new trial on November 15, 2012. On December 4, 2012, the court denied Mformation’s motion for relief
from costs. The Federal Circuit reactivated the appeal on December 20, 2012 after Mformation filed a new notice of appeal. On
January 3, 2013, a new entity, Mformation Software Technologies, Inc. (“MST”), filed a motion to substitute parties, alleging that
Mformation had dissolved and that MST had assumed the rights, but not the liabilities, to the litigation. On January 14, 2013, the
Company filed an opposition to MST’s motion, combined with a motion to dismiss. Proceedings are ongoing.
On November 20, 2008, the Company filed a lawsuit for declaratory judgment of non-infringement, invalidity and unenforceability
against four Eastman Kodak (“Kodak”) patents in the U.S. District Court for the Northern District of Texas (Dallas Division). The
patents in suit include U.S. Patent Nos. 5,493,335, 6,292,218 (“the ’218 Patent”) and 6,600,510 (“the ’510 Patent”) which are
generally directed to digital camera technologies and U.S. Patent No. 5,226,161 which is directed to data sharing in applications.
Kodak counterclaimed for infringement of these same patents seeking an injunction and monetary damages. The claim construction
hearing was held on March 23, 2010. On July 23, 2010, Kodak dismissed the ’510 Patent from the case without prejudice. The court
set an initial trial date in December 2010. The court also ordered mediation to seek to settle the case. Mediation was unsuccessful and
on November 29, 2010 the court reset the trial date for August 1, 2011. On July 20, 2011, the court again reset the trial date for the
three-week docket
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