RIM executives may understand the meaning behind the saying “when it rains, it pours” better than anyone can imagine thanks to a disastrous financial quarter.. Canada’s once upon a time beacon of technology have been asked to pony up a substantial $147 million as part of a patent lawsuit in California. The news could not come at a worse time for the BlackBerry maker, as word of massive job cuts, operating losses and product and software delays have investors and consumers avoiding the company like a plague. The latest news is simply another kick to a horse that has seen livelier days.
The lawsuit involved Delaware-based company Mformation Technologies and a patent for technology surrounding the remote management of wireless devices over a wireless network. It is strongly believed that RIM will challenge the less than favourable verdict; a decision that finally came after the 2008 suit was filed.
Others feel that the resources that would be required to fight the good fight in courts is simply too much for a company that has cut one third of its workforce and is in desperate need of strategic direction and innovation.
The news arrived on the heels of what would have been a spirited shareholder’s meeting that took place. Board members were asked to explain the delays, strategy and losses that have plagued the company and in doing so, eroded equity that had been built in the company.
It will remain to be seen what exactly comes of this patent related verdict and what steps RIM decides to take whether it is simply accepting the charge and cutting losses or appealing the verdict and fighting for their rights.
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