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RIM NTP workaround for use in all BlackBerries -CEO

By Jeffrey Hodgson

TORONTO (Reuters) - Research In Motion Ltd.'s (RIM.TO: Quote, Profile, Research) "workaround" technology, designed to skirt patents at the center of its legal battle with NTP Inc., could be used with all of its existing BlackBerry email devices, the firm's co-chief executive said on Thursday.

"Part of what we have done is a workaround. We've completed it. We've tested it and we have a legal opinion on it, so it's an option," RIM co-chief executive Jim Balsillie told Reuters.

"The structure of the workaround would be something that could be deployed broadly. So the architecture of it, and I'll give no more comments beyond this, works for all BlackBerries out there."

RIM, which helped popularize mobile e-mailing with its thumb-operated BlackBerry, rattled investors earlier this month with news it failed to finalize a $450 million patent dispute settlement with closely held U.S.-based patent holding company NTP.

RIM said it had developed a technology to work around the NTP patents, which it could use as an alternative, but it gave few details.

The patent deal would have resolved the bitter and potentially damaging dispute. The impasse revives the risk of a court injunction that would halt U.S. sales of RIM's flagship wireless e-mail device.

NTP successfully sued RIM in 2002 for patent infringement, winning an injunction in 2003 to halt U.S. BlackBerry sales that was stayed pending appeals.

In December, a U.S. appeals court upheld the patent infringement finding against RIM, but said part of the earlier ruling was flawed and sent the case back to a lower court.

RIM WANTS CASE BEHIND IT

The Canadian company, based in Waterloo, Ontario, agreed in March to pay $450 million, believed to be one of the largest such settlements, and it predicted the negotiation of a final settlement within weeks.

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It has now asked a U.S. court to enforce the terms of the March deal. NTP opposes that and says the earlier deal did not constitute a meeting of minds.

In a court filing this week, RIM said the continued litigation "places a cloud of uncertainty" over its business and its ability to supply its technology.

"There's been an effort certainly by people to sort of cast uncertainty (on) our business and we don't want that. And that was part of the motivation for doing the original settlement," Balsillie said.

"We're not trying to change the settlement. We're not trying to pay less. We're not trying to modify the scope. And we really want to put this thing behind us."

Balsillie declined to speculate on when the RIM will hear back from the U.S. courts on the issue.

He also said RIM was keeping its eye out for smaller acquisitions that would augment its technology.

"We're not contemplating at this time a big monster acquisition, something that is dramatically outside of our current strategy," he said.

Shares of RIM closed up 2.5 percent, or $1.77, at $73.78 on Nasdaq on a volume of more than 8.4 million. In Toronto, the stock rose C$1.89 to C$91.14.

($1=$1.24 Canadian)

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