All about RIM

Research in motion the company behind the BlackBerry wireless e-mail device, has resolved its
patent dispute with NTP, the companies announced Wednesday.
As part of the settlement to resolve all legal matters between the companies, NTP and RIM will
enter in to licensing agreement, the terms of which will be finalized in upcoming weeks, RIM
said in a statement.
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In 2002, a jury in the U.S. District Court for the Eastern District of Virginia found that RIM
willingly infringed patents held by NTP , an intellectual property holding company in Arlington,
Va. NTP was incorporated to hold patents obtained by Tom Campana for a wireless
communications system he developed for his pager company.
RIM, in Waterloo, Ontario, has now agreed to pay NTP $612.5 million to settle all pending
claims, as well as for a perpetual, fully paid up license going forward, RIM said.
RIM Revenue
• 1999: $47,342,000
• 2005: $1,350,447,000
Source: 2000 RIM Annual Report

BlackBerry & 9/11

During and after the September 11 terrorist attacks, many cell phone networks could not handle
the high volume of callers, particularly in the New York City area. At the time, all BlackBerry
handhelds used a proprietary network. The BlackBerry network continued to work normally,
leading to increased BlackBerry use among police, fire fighters and other emergency workers.
Now, most BlackBerry handhelds and phones use the same networks as other cell phones. Using
one requires a cell phone service plan with data capabilities.

Lately, RIM had been dealing with issues of patent infringement. We'll look at that next

PATENT LAWS N NTP

PATENT law can be tricky, and the claims companies make in their patents can be hard to
quantify. But here is the basic dilemma that RIM and the BlackBerry were facing -- NTP
Incorporated holds several patents for wireless e-mail technology. RIM's push technology is
similar to, but more complex than, the technology NTP has patented. NTP had accused RIM of
patent infringement, and judges and juries agreed. The patent dispute and a delayed rollout of
new BlackBerry models caused a slight slowdown in RIM's rapid growth.
The dispute between NTP and RIM started in 2001, when NTP sued RIM. Courts have generally
ruled in NTP's favor, granting monetary settlements and injunctions against RIM. RIM, however,
has appealed the rulings and had requested a review of NTP's patents. The United States Patent
and Trademark Office (USPTO) has overturned several of the patents in question.
Future Cases
Although now settled, the RIM/NTP dispute raises the question of why other companies that
provide smart phones with push technology are not in court as well. Some of these companies
have licenses from NTP to use patented technology. Others use technology that does not conflict
with NTP's patents. Regardless of whether an injunction eventually shuts down RIM's business in
the United States, more companies are likely to introduce PDAs and smart phones with push e-
mail and data capabilities, until constant access to e-mail and an updated calendar is as common
as a cell phone.
In November of 2005, a United States district judge ruled that a previous monetary settlement
between the two companies was not enforceable. On January 23, 2006, the United States
Supreme Court turned down RIM's request to review the district court ruling. The big concern
was that this decision would lead to an injunction prohibiting BlackBerry sales and service in the
United States. The U.S. Department of Justice requested a 90-day stay for essential government
employees in the event of an injunction. RIM suggested the possibility of a software work-
around that would not infringe on NTP's patents, and RIM and NTP began negotiations through
a court-appointed mediator.
RIM and NTP have settled their dispute. The cost -- $612.5 million. The result -- NTP grants
RIM a license to NTP's patents. According to a press release issued by both companies on March
3, 2006, here's the agreement:
"The licensing and settlement agreement relates to all patents owned and controlled by
NTP and covers all of RIM's products, services and technologies. NTP grants RIM an
unfettered right to continue its business, including its BlackBerry® related business. The
resolution permits RIM and its partners to sell RIM products and services completely free
and clear of any claim by NTP, including any claims that NTP may have against wireless
carriers, channel partners, suppliers or customers in relation to RIM products or services,
(including BlackBerry Connect and Built-In technology), or in relation to third party
products and services, to the extent they are used in connection with RIM products and
services."

RIM N VISTO LEGAL ISSUES

BlackBerry users have another patent lawsuit to worry about. Just weeks after their service was
nearly shut down by a lawsuit brought by NTP, the wireless e-mail devices are now being
threatened by legal action brought by software provider Visto.
In a lawsuit filed Friday in the U.S. District Court for the Eastern District of Texas, Visto claims
that Research In Motion's (RIM) BlackBerry service violates four Visto patents. The lawsuit
seeks unspecified damages and asks the court to shut down BlackBerry's service in the United
States.
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The patents in question relate to the accessing and synchronizing of information over a network
and are fundamental to the BlackBerry service, said Brian Bogosian, Visto's chairman, president
and CEO, speaking during a Monday conference call. "RIM should not be able to sell the
BlackBerry system," he said.
Visto's lawsuit was filed on the same day a Texas jury awarded the company $3.6 million in a
similar patent lawsuit against competitor Seven Networks. Three of the four patents in the RIM
lawsuit were also invoked in the Seven Networks lawsuit, Visto said.
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RIM downplayed the significance of the Seven Networks decision. "Visto’s patent claims as
directed against Seven Networks refer to a different type of system than RIM’s technology," the
BlackBerry vendor said in a statement. "RIM believes it does not infringe Visto’s patents."
RIM is considering a patent counter-suit against Visto, the company said.
Founded in 1996, Visto's e-mail and calendaring applications are used by more than 200,000
customers worldwide, and are available through a number of wireless services including those of
AT&T, Bell Canada and Vodafone.
Though Visto alleges that RIM has been violating its patents for years, the company had a couple
of reasons for waiting until now to file the lawsuit, Bogosian said. Visto, which is also suing
Microsoft and Good Technology for violating some of these same patents, did not want to
"dilute" its legal resources by launching the suit before the Seven Network judgment, he said.
RIM settled its long-running legal battle with NTP in March, paying NTP $612.5 million to
settle all of its claims.
This settlement was also a factor in Visto's decision to move forward with its own lawsuit,
Bogosian said. "There was a very significant and real risk that RIM would be shut down," he
said. "In our opinion, it did not make sense to launch a litigation at that time."
Visto is now ready for a "protracted battle" against the BlackBerry maker, Bogosian said. The
company, based in Redwood Shores, Calif., has no plans to launch similar lawsuits outside of the
United States, he added.
Either way, a resolution in this matter could be years away. It may take until the middle of 2007
for "material court proceedings" to begin, RIM said.
Bogosian also left the door open to the possibility of a settlement that would not involve a
BlackBerry shutdown, provided "a reasonable resolution" could be found. "We're also business
people," he said.

RESEARCH IN MOTION REPORTS SECOND QUARTER RESULTS

Waterloo, ON – Research In Motion Limited (RIM) (Nasdaq: RIMM; TSX: RIM), a world
leader in the
mobile communications market, today reported second quarter results for the three months ended
August
28, 2010 (all figures in U.S. dollars and U.S. GAAP).

Highlights:
• Revenue grew 31% over the same quarter last year to $4.62 billion
• Earnings per share in the second quarter increased 76% to $1.46 over the second quarter
last
year
1

• BlackBerry® smartphone shipments grew more than 45% over the same quarter last
year to
12.1 million and RIM has shipped approximately 115 million BlackBerry smartphones to
date
• BlackBerry subscriber account base grew approximately 56% over the prior year to over 50
million

Q2 Results:
Revenue for the second quarter of fiscal 2011 was $4.62 billion, up 9% from $4.24 billion in the
previous
quarter and up 31% from $3.53 billion in the same quarter of last year. The revenue breakdown
for the
quarter was approximately 79% for devices, 17% for service, 1% for software and 3% for other
revenue.
During the quarter, RIM shipped approximately 12.1 million devices.

Approximately 4.5 million net new BlackBerry® subscriber accounts were added in the
quarter. At the
end of the quarter, the total BlackBerry subscriber account base was over 50 million.

"RIM set another new record in the quarter by shipping over 12 million BlackBerry smartphones.
This
accomplishment and RIM’s solid financial results during the second quarter were driven by
effective
business execution and strong demand for RIM’s portfolio of BlackBerry smartphones and
services in
markets around the world," said Jim Balsillie, Co-CEO at Research In Motion. "We expect a
continuation
of this momentum in the third quarter as we extend the rollout of new products including the
BlackBerry
Torch into additional markets and benefit from heavy promotional activities and increasing
customer
demand as we head into the holiday buying season."

The Company’s net income for the quarter was $796.7 million, or $1.46 per share diluted,
compared with
net income of $768.9 million, or $1.38 per share diluted, in the prior quarter and net income of
$475.6
million, or $0.83 per share diluted, in the same quarter last year. The impact of Q2 share
repurchases on
second quarter fiscal 2011 earnings per share was approximately $0.02 per share.

The total of cash, cash equivalents, short-term and long-term investments was $2.03 billion as at
August
28, 2010, compared to $3.27 billion at the end of the previous quarter, a decrease of $1.24 billion
from the
prior quarter. Cash flow from operations in Q2 was approximately $938 million. Uses of cash
included
common share repurchases of approximately $1.5 billion, business acquisitions of approximately
$320
million, capital expenditures of approximately $200 million and intangible asset purchases of
approximately $100 million.

1
Earnings per share in the second quarter of fiscal 2010 included a charge of $0.20 relating to the
settlement of all outstanding worldwide patent litigation with Visto Corporation.

Advantages and Disadvantages of

BlackBerry Messenger
BlackBerry Messenger can be a definite asset, if you want to exchange messages with other
Blackberry users. With it, you can:
• Carry on a real-time conversation with friends and colleagues in several different
locations -- or carry on several conversations simultaneously.
• Chat with a group.
• Send and receive an unlimited number of messages worldwide for free with no per-
message charge.
• Get messages without filling up your inbox.
• Know whether a buddy is online, available or busy.
• Let your contacts know your own availability for instant messaging.
• Manage log-in and contacts as you would if you were using an IM program from your
PC.
• Continue using other programs and send and receive e-mails while BlackBerry
Messenger is running.
• Invite someone to join your buddy list and start communicating without setting up a
separate IM account.
• Be notified by a specific ringtone or vibration setting each time a message arrives from a
particular person.
[sources: BlackBerry Connection, BlackBerry Messenger User Guide and CrackBerry]

One disadvantage of BlackBerry Messenger is that you can't send an instant message to someone
unless you know his or her PIN code, the eight-digit letter-and-number code assigned to that
particular Blackberry device.
When the BlackBerry debuted in 1999, carrying one was a hallmark of powerful executives and
savvy technophiles. People who purchased one either needed or wanted constant access to e-
mail, a calendar and a phone. The BlackBerry's manufacturer, Research in Motion (RIM),
reported only 25,000 subscribers in that first year. But since then, its popularity has skyrocketed.
In September 2005, RIM reported 3.65 million subscribers, and users describe being addicted to
the devices. The BlackBerry has even brought new slang to the English language. There are
words for flirting via BlackBerry (blirting), repetitive motion injuries from too much BlackBerry
use (BlackBerry thumb) and unwisely using one's BlackBerry while intoxicated (drunk-
Berrying). While some people credit the BlackBerry with letting them get out of the office and
spend time with friends and family, others accuse them of allowing work to infiltrate every
moment of free time.

HOW STUFF WORKS THE WORKING OF THE BBM

In this article, we'll examine the "push" technology at the center of the device's popularity, RIM's
former dispute with patent holder NTP Incorporated and its current dispute with Visto
Corporation. We'll also explore BlackBerry hardware and software.
"Push" Technology
A PDA does a lot of the same things a BlackBerry does, and the PDA made its
debut several years before the BlackBerry. But until recently, the only way to make the
information on most PDAs match the
information on a person's computer was to automatically or manually sync the PDA. This could
be time-consuming and inconvenient. It could also lead to exactly the conflicts that having a
PDA is supposed to prevent. For example, a manager might schedule a meeting on the PDA, not
knowing that an assistant had just scheduled a meeting for the same time on a networked
calendar.
A BlackBerry, on the other hand, does everything a PDA can do, and it syncs itself continually
through push technology. BlackBerry Enterprise Server or Desktop Redirector software
"pushes," or redirects, new e-mail, calendar updates, documents and other data straight to the
user over the Internet and the cell phone network.
BlackBerry Devices in the United States
70 percent of BlackBerry subscribers live in the United States.
Source: Washington Post

First, the software senses that a new message has arrived or the data has changed. Then, it
compresses, packages and redirects the information to the handheld unit. The server uses
hypertext transfer protocol (HTTP) and transmission control protocol (TCP) to communicate
with the handhelds. It also encrypts the data with triple data encryption standard (DES) or
advanced encryption standard (AES).
The software determines the capabilities of the BlackBerry and lets people establish criteria for
the information they want to have delivered. The criteria can include message type and size,
specific senders and updates to specific programs or databases.
Once all of the parameters have been set, the software waits for updated content. When a new
message or other data arrives, the software formats the information for transmission to and
display on the BlackBerry. It packages e-mail messages into a kind of electronic envelope so the
user can decide whether to open or retrieve the rest of the message.
Up Next
• How BlackBerry Outages Work
• How BlackBerry Messenger Works
• ScienceChannel.com: Hacking Mobile Phones

The BlackBerry listens for new information and notifies the user when it arrives by vibrating,
changing an icon on the screen or turning on a light. The BlackBerry does not poll the server to
look for updates. It simply waits for the update to arrive and notifies the user when it does. With
e-mail, a copy of each message also goes to the user's inbox on the computer, but the e-mail
client can mark the message as read once the user reads it on the BlackBerry.
People describe BlackBerry use as an addiction, and this is why. Not only do they give people
constant access to their phones, they also provide continual updates to e-mail, calendars and
other tools.
However, the biggest disadvantage of BlackBerry Messenger
may be that it only allows you to exchange instant messages
with other BlackBerry users. Introduced in early 2006 as a
feature of BlackBerry Enterprise Server 4.1, BlackBerry
Messenger isn't compatible with popular IMing programs.
That's because it works differently.
With most instant messaging services, you download
software that becomes the client on your computer or
smartphone. That client connects to the provider's server,
using a proprietary protocol for communication. Once
you've logged on, the client sends the server your connection
information (IP address), your computer port number and
the names of everyone on your contact list.
The server creates a temporary file with connection
information for you and your contacts. Then the server
determines which contacts are logged on and sends that
information to your client, as well as letting the contacts
know you're available. After that, the server is no longer
involved, and all communication is between your client and
that of your message recipient.
With BlackBerry Messenger, however, the server stays
involved as it would if you were sending e-mails. All
communications go through parent-company Research in
Motion's servers as you continue to exchange messages. That
also means you can't use BlackBerry Messenger unless you
have a BlackBerry Internet plan, or data plan [source:
CrackBerry].
Next, let's explore what else you'll need to get started with BlackBerry Messenger and its basic
functions.
Next, we'll look at the BlackBerry's hardware and software
A BlackBerry can do everything that a cell phone can do, including sending text messages via
SMS. It's also an organizer, a calendar, an e-mail client, a Web browser, a two-way pager and a
palm-top computer. Although it can do some of the same things a computer can, it doesn't have
to be in a WiFi hot spot to work -- it uses the cell phone network as well as 802.11b WLAN. To
do all this, it combines the components of a cell phone and a PDA.
Some BlackBerry models have the same form factor and components as a smart phone. Others
look more like PDAs or palmtop computers. Specific components can vary from one model to
another, but in general the visible parts of a BlackBerry are:
• LCD display
• QWERTY keyboard
• Click wheel
• On/off, escape and other keys
• Headset jack
• USB charger connection
• Antenna (interior on some models)
• Indicator light to advise users of new messages or data
From the outside of the unit, you can also see where the microphone and speaker are
located as well as where to access the rechargeable lithium ion battery.
A printed circuit board connects everything inside the case, including:
• Light source for the LCD screen
• 32-bit microprocessor
• Memory (usually flash and RAM)
• Bluetooth transmitter (in some models)
• Wireless modem (in some models)
 The internal parts of the BlackBerry.

Unlike many earlier PDAs, which used touch screens as a user interface, the
BlackBerry has a keyboard designed for use with the thumbs. This keyboard operates
much like the keyboard of your computer, with one notable difference. Most computer
keyboards use dome switches, and each key lies over one switch. Pressing the key
activates the switch. In a BlackBerry, however, rows of dome switches lie between the
rows of keys. Each key has actuators that press one or more of the switches adjacent
to it.
 The underside of the BlackBerry keyboard.

Alternatives to BlackBerry
The BlackBerry isn't the only handheld unit that can deliver e-mail straight to users. Other
options include:
• Palm Treo
• T-Mobile Sidekick/Danger Hiptop
• Windows Mobile Pocket PC
Companies like Visto and Intellisync also provide cross-platform push e-mail services.
So why don't users just switch to another option? First, many are accustomed to the devices and
services they're already using. Second, the BlackBerry's popularity has led to a wide range of
third-party applications, some of which are critical to certain businesses and are not available
through other devices and services.

The BlackBerry's software uses a lookup table to match each letter with a specific combination
of dome switches. This layout uses fewer switches, allowing a smaller keyboard.
BlackBerry smart phones have even less space for a keyboard, so each key corresponds to more
than one letter. Predictive text software called SureType lets a person type normally and
determines the right word as the person types. People can also use multiple taps on each key to
select different letters as most people currently do to send text messages on their cell phones.
Next, we'll look at the software that drives the BlackBerry.

All The news

In brief: India tells telcos to upgrade networks to
intercept Blackberry data
From Dow Jones Newswires
Monday 20 September 2010

DoT orders operators to submit compliance reports by 22

September.
India's government has asked telecommunications service providers
to upgrade their networks to intercept information sent and received
on Research In Motion Ltd.'s BlackBerry services, the Press Trust of
India reported Sunday, citing a communication to operators from the
Department of Telecom.

"A compliance report that the network has been technically upgraded
to intercept all BlackBerry services by legal enforcement agencies for
lawful interception must be provided to this office by Sept. 22," the
PTI quoted the DoT as saying.
(Reuters) - India has asked mobile phone operators to upgrade their
networks to help security agencies intercept communication on
BlackBerry devices, three sources with direct knowledge of the matter
said on Monday, as the government wants access to highly-secure
data.
India had threatened to shut off RIM's encrypted email and instant messaging services unless it
gained access to them, in a campaign driven by fears that unmonitored email and messaging puts
the country's security at risk.
In addition to India, several other countries, mostly in the Middle East, have raised concerns that the
popular BlackBerry device could be used to aid terrorism or peddle pornography.
The Indian interior ministry said on August 30 that the Canadian firm had offered several ways to
allow authorities to monitor BlackBerry communications. The government said it would check their
feasibility over the next 60 days.
"(Mobile) service providers will have to upgrade so that access to BlackBerry services are smooth,"
said a senior government source with knowledge of the developments on Monday.
An India-based spokesman for RIM declined to comment on whether the government had started
accessing BlackBerry traffic.
Mobile operators have been asked to submit compliance reports on the upgrade with India's
telecoms ministry by Sept 22, another source said.
An official with an Indian cellular carrier, who declined to be identified, confirmed that his firm had
received a request from the government asking for the network upgrade.
The sources did not elaborate on what kind of additional technical capabilities were needed in phone
networks to intercept the secure communications. The sources declined to be identified because the
information is not public.
New Delhi has said it began accessing some BlackBerry traffic in India, although RIM has not
confirmed that.
India's efforts to monitor BlackBerry traffic could have an impact on the shape of India's mobile
phone market, the world's fastest-growing, and possibly hand gains to Apple Inc and Nokia,
BlackBerry's two biggest smartphone rivals in India.
Data sent from non-RIM devices is easier to intercept and only requires the approval of the carrier,
whereas RIM says carriers have no access to its encrypted data.

Government asks mobile service providers to upgrade for

BlackBerry news

20 September 2010

Hard put to make Canadian telecom gear supplier Research In Motion to facilitate government
monitoring of its encrypted BlackBerry messaging service in compliance with the country's
security requirements, the government has now asked telecom service providers in the country to
upgrade their networks in order to intercept BlackBerry messages.
The department of telecommunications (DoT) has asked mobile phone operators to upgrade their
networks by 22 September.
Reports quoting DoT officials said the department has also asked service providers to submit a
compliance report to the effect that networks have been technically upgraded to intercept all
BlackBerry services by legal enforcement agencies for lawful interception by 22 September.
India networks told to be able to monitor Blackberry: source
(AFP) – 1 hour ago
NEW DELHI — India has told telecom service providers to make sure security agencies can
monitor messages sent on BlackBerry phones through their networks, a domestic mobile phone
company executive said Monday.
Telecom operators have a responsibility under Indian law to ensure security agencies can access
all services carried on their networks.
India last month said it had given the Canadian makers of the BlackBerry smartphone a 60-day
reprieve on a threat to ban its messaging services after the firm agreed to give security forces
"lawful access" to data.
The Department of Telecommunications has told mobile operators to give a "compliance report"
by Wednesday that their networks have been "upgraded" to allow law enforcers to intercept
BlackBerry data, the Press Trust of India said.
A senior executive of a leading mobile phone company, who did not want to be named, told AFP
the notice concerning BlackBerry messages "has been sent to all (telecom) providers."
He could not say what changes networks might need to make to monitor the communications
sent through the smartphones, which are manufactured by Research in Motion (RIM).
The government, battling insurgencies as far apart as Kashmir in the northwest to the remote
northeast, fears the heavily encrypted communications sent through BlackBerry handsets could
be used by militants to plan attacks.
The government notice said telecom service providers would soon be told the date when they
would have show the interception methods are working.
BlackBerry had no immediate comment on the notice.
RIM was quoted as saying last week it was continuing discussions with governments in India
and other countries which have security concerns about BlackBerry's messaging services and
believed "good progress" had been made.
RIM has insisted it is seeking to honour its commitment to be as cooperative as possible with
governments "in the spirit" of supporting national security needs while preserving "the lawful
needs of citizens and corporations".
India can already monitor so-called BlackBerry "consumer mails" which have a lower level of
encryption.
India had sent a similar formal notice to mobile operators ordering them to ensure security
agencies could monitor BlackBerry messages in mid-August.
NEW DELHI: India on Thursday began examining a technical solution provided by BlackBerry's Canadian
manufacturer to access the smartphone's mails under its enterprise services, meeting the country's security
concerns.

"The Blackberry's manufacturer provided some technical solution to access their enterprise services in a meeting with
officials from ministries of home and the department of telecommunications, besides other departments," said a home
ministry official.

Asked about how far the solution meets the country's security concerns, the official said: "We are yet to assess its
efficacy. A technical discussion is underway currently to examine its workability. We are likely to reach any conclusion
only Friday."

Research In Motion (RIM) had agreed earlier to offer a technical solution to access its smart phone enterprise
services in the meeting held Thursday.

A top home ministry official had said Wednesday that RIM had already provided access to one of its two services
under scanner by the Indian security agencies.

"We are already accessing Blackberry Messenger Services now. RIM officials will meet us on Thursday and Friday to
take the process further. We hope to take a final decision on this by early next week," the official had said.

"They (RIM officials) also told us they will provide some sort of a technical solution to access BlackBerry Enterprise
Services. So we will then evaluate all these things, see if it satisfies our security concerns and take a decision
accordingly."

India has already set Aug 31 as deadline for the country's telecom operators to give access to decoded data sent via
BlackBerry devices to law enforcement and security agencies, just as they have access to SMS messages and
phone calls.

The deadline was primarily set for two BlackBerry's offerings -- the enterprise service, used mainly by corporates to
connect their mail system with the device, and messenger for instant data communications.

"If a technical solution is not provided by Aug 31, 2010, the government will review the position and take steps to
block these two services from the network," an official statement issued earlier this month had said.

BLACKBERRY ENTERPRISE SERVER

BlackBerry Enterprise Solution security
The BlackBerry® Enterprise Solution consists of various products and components that are
designed to extend your organization’s communication methods to BlackBerry devices. The
BlackBerry Enterprise Solution is designed to protect data that is in transit at all points between a
BlackBerry device and BlackBerry® Enterprise Server. To protect data that is in transit over the
wireless network, the BlackBerry Enterprise Server and BlackBerry device use symmetric key
cryptography to encrypt the data. Only the BlackBerry Enterprise Server and BlackBerry device
can decrypt the data that they send between each other. The BlackBerry Enterprise Server is
designed to prevent third parties, including wireless service providers, from accessing your
organization's potentially sensitive information in a decrypted format.