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Volume: 72 Number: 1768
May 05, 2006



Visto Corp. Sues BlackBerry Maker RIM, Wins Jury Verdict Against Other Company

Visto Corp. announced May 1 that it has sued BlackBerry maker Research in Motion Ltd. for infringing four of its patents on mobile e-mail technology (Visto Corp. v. Research in Motion Ltd., E.D. Tex., No. 2-06CV-181, complaint filed, 4/28/06).

The lawsuit was filed April 28 in the U.S. District Court for the Eastern District of Texas, on the same day that a jury in that court ruled in Visto's favor in a similar patent infringement lawsuit against Seven Networks (Visto Corp. v. Seven Networks Inc., E.D. Tex., No. 2:03-CV-333-TJW, jury verdict, 4/28/06).

Visto is seeking an injunction and monetary damages against RIM.

The new challenge to RIM comes barely two months after the company agreed to pay $612.5 million to settle its long-running infringement suit with NTP Inc. involving the popular handheld BlackBerry e-mail device. Research in Motion Ltd. v. NTP Inc.,E.D. Va., No. 3:01CV767, settlement,3/3/06 (71 PTCJ 489, 3/10/06).

Visto, which licenses some of the NTP patents and provides e-mail platforms for various mobile phone carriers, has similar patent infringement actions pending in the Texas federal court against several other companies, including Good Technology Inc. and Microsoft Corp. Visto Corp. v. Microsoft Corp.,E.D. Tex., No. 2-05CV-546, complaint filed, 12/14/05 (71 PTCJ 208, 12/23/05).

Same Patents at Issue.

Three of the following four patents asserted against RIM were also at issue in Visto's win over Seven Networks:

•(6,085,192) “System and Method for Securely Synchronizing Multiple Copies of a Workspace Element in a Network;

•(6,023,708) “System and Method for Using a Global Translator to Synchronize Workspace Elements Across a Network”;

•(6,708,221) “System and Method for Globally and Securely Accessing Unified Information in a Computer Network”; and

•(6,151,606) “System and Method for Using a Workspace Data Manager to Access, Manipulate and Synchronize Network Data.”

The '192, '221, and '606 patents are also involved in Visto's action against Microsoft.

Visto said in a press statement that its case against RIM is strengthened by the fact the '192 patent was recently upheld on reexamination by the Patent and Trademark Office.

Jury Verdict, Royalty Award.

Visto's patent infringement suit against Seven Networks was filed in 2003. Seven Networks in turn filed a countersuit against Visto last August for infringement of two of its own wireless technology patents (5,857,201 and 6,324,542).

According to the jury verdict in Visto's case against Seven Networks, the jury upheld the validity of all three asserted patents. The jury also found that the each of the accused Seven Networks software products “infringes, contributes to the infringement of, or induces infringement of” the three patents, and that the infringement was willful.

The jury awarded damages “in the form of a reasonable royalty” of $3.6 million. The court is expected to hold a hearing concerning an injunction against Seven Networks that would prohibit the further use of its mobile e-mail system, according to Visto.

RIM Says Visto Patents Are Invalid.

RIM said in a May 1 press statement that it “has been monitoring Visto's litigation against other companies in the industry and, based on prior art and actual products in market, RIM believes Visto's patents are invalid.”

According to RIM, the patent claims asserted against Seven Networks “refer to a different type of system than RIM's technology.” The Ontario, Canada-based company denied infringement, also indicating that it “will file its legal response in due course.”

In addition to challenging validity and infringement, RIM said that it “will consider asserting its own patents against Visto.”

“RIM is fully prepared and equipped to deal with the matter and will continue to disclose material information as it becomes available,” the company said. “RIM does not expect its customers to be impacted by Visto's complaint and, given the status of Visto's current litigation with other companies, it is unlikely that any material court proceedings in this litigation could begin prior to the middle of calendar 2007.”

Visto Hails 'Vindication.'

“Friday's sweeping decision against Seven Networks validates our claims that Visto's intellectual property serves as the basis for this industry's birth,” Visto CEO Brian Bogosian said in a press statement. “The royalty rate awarded in this case reflects the tremendous value of Visto's patents in the mobile space,” he said.

Bogosian predicted that the court will also halt RIM's “infringement of Visto's technology.” He noted that the case against RIM “is based on similar technology, law and patents as the case we have just won in federal court against Seven Networks.”

“Under the law, which protects consumers from products that contain infringing technology, RIM should not be able to sell the BlackBerry system,” Bogosian said. “The verdict over Seven Networks is vindication for more than 10 years of investment in our own homegrown intellectual property,” he added.


 Full text of the Visto Corp. v. RIM Ltd. complaint is at http://pub.bna.com/ptcj/VistovRIM.pdf


 Full text of the Visto Corp. v. Seven Networks Inc. jury verdict is at http://pub.bna.com/ptcj/sevennetworksverdict.pdf


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