BlackBerry details patent deal with Android maker BLU

BlackBerry details patent deal with Android maker BLU

Reuters  | Oct 12, 2017 11:52AM ET

BlackBerry details patent deal with Android maker BLU

By Alastair Sharp and Jan Wolfe

TORONTO/NEW YORK (Reuters) - BlackBerry Ltd (TO:BB) said a licensing deal it signed with low-end Android handset maker BLU Products Inc will bring it recurring revenue, ending a legal dispute over patents that rival Google has asked the U.S. government to revoke.

BlackBerry did not disclose financial terms and its shares were little changed after the news, rising 0.5 percent in late Thursday morning Nasdaq trade (O:BBRY).

BlackBerry filed two lawsuits against Miami-based BLU in June 2016, part of an effort by the Canadian company to generate revenue from its trove of technology patents.

Alphabet Inc's (O:GOOGL) Google responded to lawsuits against a maker of phones running its Android operating system by challenging six of the patents at the U.S. Patent and Trademark Office.

In late August and early September, a patent office appeal board said that Google had a "reasonable likelihood" of winning the invalidation of four patents in a full review.

The deal between BlackBerry and BLU was likely secured prior to a July 19 memorandum of understanding filed with the court hearing their patent dispute. The two firms have declined to disclose financial terms of that agreement.

BlackBerry Chief Executive Officer John Chen said on a Sept. 28 earnings call that his company had received revenue from BLU, but did not elaborate.

It was not clear if that payment was included in that quarter's earnings, which beat analysts' forecast on a jump in licensing fees that includes patent payouts and royalties on BlackBerry-branded devices and software sold by others.

Patent licensing deals are typically structured with an upfront payment to cover past sales and ongoing royalty payments tied to future sales.

Market intelligence company IDC estimates that BLU accounts for less than 1 percent of global smartphone market share.

BlackBerry said in its statement on Thursday that the completion of the BLU deal allows it to focus on other licensing targets in the mobile communications industry.

"Anytime you have royalty-bearing licenses, you are setting a market rate," said David Pridham, chief executive of Dallas-based patent consulting firm Dominion Harbor Group, which recently analyzed BlackBerry's patent portfolio on behalf of a group of handset manufacturers.

"Doing so with a smaller player will be helpful as BlackBerry turns its attention to larger market incumbents," he said.

© Reuters. FILE PHOTO: A man holds the new BlackBerry Key One before the Mobile World Congress in Barcelona

BlackBerry is also waging two other patent lawsuits, one involving Nokia Oyj's (HE:NOKIA) mobile networking technology filed in February and another broadly targeting Avaya products that was filed in July 2016.

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
tony ooh
tony ooh

if you know blu devices, you know amazon. growing daily.  ... (Read More)

Oct 12, 2017 04:14PM GMT· Reply
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Fusion Media will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.

English (UK) English (India) English (Canada) English (Australia) English (South Africa) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+