Blackberry, one of the first smartphone manufacturers, has sold its legacy patents covering mobile technology to Catapult IP Innovations Inc. for $600 million, which would likely result in more legal drama for smartphone manufacturers like Apple in the future.
A patent troll is a company that makes money by exploiting patents and the legal system. In layman’s words, Catapult IP Innovations Inc. may seek royalties or sue other smartphone manufacturers for patent infringement based on the patents it bought from Blackberry.
The Cupertino-based smartphone maker has already been sued for claimed patent infringements, which are now being sold to Catapult IP Innovations Inc., which might be considered a non-practicing organization (NPE).
BlackBerry is likely to receive $450 million in cash, a $150 million promissory note, and a patent licence as part of the agreement. Catapult IP Innovations Inc. will get BlackBerry’s patents on mobile devices, messaging, and wireless networking IPs in exchange. The transaction includes all of the company’s non-core patent holdings, according to the company.
BlackBerry stated that the agreement will have no impact on existing consumers who use the company’s goods or services.
The purchase will also have to meet all regulatory conditions under the Hart–Scott–Rodino Antitrust Improvements Act in the United States and the Investment Act in Canada, which may take nearly seven months, according to the business.
To read our blog on “Samsung patents first smartphone with folding and sliding display,” click here.
