New software to avert shutdown: BlackBerry

NEW YORK (AFP) - The maker of the BlackBerry wireless e-mail device said it has developed a "software workaround" to maintain US service even if a judge issues an injunction in a patent infringement case.

Canadian-based Research in Motion (RIM), which makes the handheld device used by more than three million people in the United States, announced the new software ahead of a key court showdown in the patent case.

RIM said that even if the US judge issues an injunction that would prevent the use of the patents in question, BlackBerry devices would still function with the new software.

The announcement comes two weeks before a possible US court injunction pressed by patent holder NTP was expected to silence handsets in the United States, including those used by US government and national security officials.

The injunction was sought last year by US-based NTP Software which claims the Blackberry breaches its patents.

"Although there is no injunction order in place, and RIM believes it has strong legal and factual arguments opposing an injunction, RIM has developed these software workaround designs as a contingency to allow BlackBerry service to continue should the court implement an injunction in the current litigation involving the NTP patents," the Canadian firm said in a statement.

RIM said it was negotiating with NTP but that the latest offer from the US firm was unacceptable. It also said the US Patent Office may issue a ruling in the case that favors RIM.

"RIM remains pragmatic and reasonable in its willingness to enter into a settlement that would generously compensate NTP while protecting RIM's business and partners," said Jim Balsillie, chairman and co-chief executive at Research In Motion.

"NTP's public offer of a so-called 'reasonable' license, however, is simply untenable. It comprises illusory protection for RIM and its partners and requires a lump-sum payment for the theoretical life of the patents even though the US Patent Office is expected to nullify them."

Balsillie added: "RIM's workaround provides a contingency for our customers and partners and a counterbalance to NTP's threats. This will hopefully lead to more reasonable negotiations since NTP risks losing all future royalties if the workaround is implemented."

RIM said its latent software patch has been tested and pre-loaded into new handsets, ready to activate if it loses its battle with NTP, and can be downloaded into older Blackberries.

The new "invisible" software would look and operate the same as the old, RIM said.

NTP sued RIM for patent infringement in 2002 and won an injunction the following year to shut down the wireless e-mail service in the United States.

The injunction was delayed pending appeals.

The US Justice Department has filed a brief in the case seeking an exemption from any injunction for the estimated one million government users of the BlackBerry.