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R.I.P RIM? BlackBerry Maker Loses $147M Patent Lawsuit, Risks Developer Exodus

Pooja Drubra

It seems that dark clouds are lurking over the future of BlackBerry's RIM. Recently, a San Francisco-based jury has found Research in Motion Ltd. liable for $147 million worth of damages for patent infringement of Mformation Technologies.

Alec Sauders, head of Research in Motion's developer program said, "I was pretty shocked by the findings because the numbers in the report do not gel with what we're seeing in the real world. The report contradicts much of what we are seeing and hearing in our developer community".

Initially, in October 2008, Mformation had sued RIM for infringing its invention dated back to 1999 that was meant to manage the wireless devices remotely. At present, RIM is already suffering from plummeting sales and stock-declining problems.

The jury has asked RIM to pay $8 to its client for their total of 18.4 million BlackBerrys, which were connected to the BlackBerry Enterprise Server. This amount encompasses the day of the lawsuit filing to the trial time period and comes to a total of $147.2 million.

RIM has been witnessing a loss in the market share since users look for more than e-mail-friendly phones. To add fuel to the fire, there have been constant repeated delays for BlackBerry 10 OS, the operating system that is trying to catch up with the next-gen smartphones that have iOS and Android OS.

The U.S. market share of BlackBerry has dropped from 41% since the year 2007. Additionally, instances of a repeated drop in the company's stock, which traded for more than $30 less than a year ago (and has again dropped below $8 ) has added to its woes.

The recent research study from the popular Braid Equity Research says that "31% of sampled BlackBerry 10 developers said that they have shifted some or all of their work away from BB10, compared with 34% in Q1. This is the second quarter in which we have seen fewer responders indicating that they will shift some of their work away from BlackBerry. We believe that many developers who planned to jump ship have already made the move, leaving a BlackBerry developer base that is smaller but increasingly loyal".

In other words, there is a set of developers who are still committed to BlackBerry OS and are continuing with it.

With the company stocks are dropping every second day, the recent being 2.4 percent when it closed at $7.24, the road ahead for BlackBerry looks bumpy. Hopefully, the dark clouds will flit away soon and RIM will have sunny days ahead to look forward to.

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