Canadian smartphone manufacturer BlackBerry has sold its legacy patents covering mobile technologies to Catapult IP Innovations Inc. for $600 million. The company has disclosed that the sale consists of all its non-core patent assets.
According to a report by AppleInsider, this move from BlackBerry may spell trouble for other smartphone companies like Apple who may be subject to patent trolling in the future.
The concern arises as the Cupertino-based giant has been sued multiple times in the past for alleged BlackBerry patent infringements and the patents are now being sold to Catapult IP Innovations Inc. which could be considered a nonpracticing entity (NPE).
For those unaware, a patent troll is a derogatory term used to describe a business that utilizes patents and the court system to earn money. In other words, the company may use the patents it acquired from the deal with BlackBerry to demand royalties or outright sue other smartphone manufacturers for patent infringement.
BlackBerry will get $450 million dollars in cash, a promissory note for $150 million as well as the 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. BlackBerry specifically says that the sale will not affect customers using its products or services.
The company says the deal will need to satisfy all regulatory conditions under the Hart–Scott–Rodino Antitrust Improvements Act in the United States and the Investment Canada Act, which could take up to 210 days.
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