{"id":8135,"date":"2022-01-31T15:51:40","date_gmt":"2022-01-31T15:51:40","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/01\/31\/blackberry-sells-mobile-patents-to-patent-troll-for-600m\/"},"modified":"2022-01-31T15:51:40","modified_gmt":"2022-01-31T15:51:40","slug":"blackberry-sells-mobile-patents-to-patent-troll-for-600m","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/01\/31\/blackberry-sells-mobile-patents-to-patent-troll-for-600m\/","title":{"rendered":"BlackBerry sells mobile patents to patent troll for $600M"},"content":{"rendered":"

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BlackBerry has sold a collection of legacy patents covering mobile technologies for $600M, a deal that will likely result in increased legal drama for smartphone producers like Apple in the future. <\/p>\n

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Announced on Monday, BlackBerry has agreed<\/a> to a patent sale agreement, which has the former smartphone giant<\/a> handing over its non-core patent assets to Catapult IP Innovations for $600 million. The transaction will grant BlackBerry $450 million in cash and a promissory note for $150 million, as well as a license back for the patents. <\/p>\n<\/div>\n

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The collection of patents relate to mobile devices, messaging, and wireless networking IPs. BlackBerry specifically says that the sale will not affect customers using its products or services. <\/p>\n<\/div>\n

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While the assurance may be good for consumers, the deal may not be so fortuitous for tech firms in the mobile market. <\/p>\n<\/div>\n

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Catapult IP Innovations is described by BlackBerry as “a Delaware company” that is a “special purpose vehicle formed to acquire the BlackBerry patent assets.” The company is funded by a $450 million senior secure loan, which includes $400 million of “conditional commitments from a lending syndicate” led by Third Eye Capital. <\/p>\n<\/div>\n

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BlackBerry’s sale is to what could be considered a “Non-practicing entity,” a company that doesn’t earn revenue from product or services sales, but is more likely to do so through asset protection. Many refer to these sorts of entities as “patent trolls.” <\/p>\n<\/div>\n

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Since there’s an expected return on investment, it is likely that the patents will be used to encourage royalty payments from device producers, potentially through lawsuits. <\/p>\n<\/div>\n

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Blackberry’s patents have been used to sue other companies in the past, such as legal action in March 2018<\/a> against Facebook over Facebook messenger. <\/p>\n<\/div>\n

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Apple has also been a target of a patent lawsuit<\/a> based on the work of Research in Motion, BlackBerry’s former name. In 2019, Non-practicing entity Fundamental Innovation Systems accused Apple of infringing on multiple payments concerning USB charging and communication technologies. <\/p>\n<\/div>\n

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The patent sale is conditional upon the satisfaction of regulatory conditions, including the U.S. Hart-Scott-Rodino Antitrust Improvements Act and the Investment Canada Act, which could take up to 210 days to complete. <\/p>\n<\/div>\n<\/div>\n