One of the oldest smartphone makers, Blackberry, has sold its legacy patents covering mobile technologies for $600 million to Catapult IP Innovations Inc. that will likely result in increased legal drama for smartphone producers such as Apple who may be subject to trolling in the future.
A patent troll is a term used to describe a business that makes use of patents and the court system to gain profits. In simpler terms, Catapult IP Innovations Inc. may use the patents acquired from Blackberry to demand royalties or sue other smartphone manufacturers for patent infringement.
Previously, the Cupertino-based smartphone manufacturer has been sued on several occasions for alleged patent infringements, which are now being sold to Catapult IP Innovations Inc. which can be considered as a non-practicing entity (NPE).
Through the deal, BlackBerry is expected to get $450 million in cash, a promissory note for $150 million, and a license for using the patents. In return, Catapult IP Innovations Inc. will acquire BlackBerry’s patents related to mobile devices, messaging, and wireless networking IPs. The company disclosed that the sale consists of all its non-core patent assets.
BlackBerry commented that the deal in no way will affect existing customers using the company’s products or services.
The company also notes that the deal will have to satisfy all regulatory conditions under the Hart–Scott–Rodino Antitrust Improvements Act in the United States, and the Investment Act in Canada, which may take almost 7 months.
