09/13/11
TM583
Case Analysis 2 - Research in Motion - RIM

1. What were some of the challenges that RIM faced to protect its intellectual property, and how did RIM handle those challenges?
Research In Motion (RIM), a global leader in wireless innovation, revolutionized the mobile industry with the introduction of the BlackBerry® solution in 1999. There are multiple examples of the challenges RIM faced to protect its Intellectual Property as well as how those challenges were handled. One such example is RIM vs Glenayre Technologies, Inc. This claim, a response to an earlier suit brought forth by Glenayre, insisted that Glenayre blatantly imitated BlackBerry technology and marketing. Later in 2001, Glenayre's initial 1999 patent suit against RIM was dismissed. In early 2002 RIM and Glenayre agreed to drop their remaining lawsuits and work together to develop a wireless e-mail device that would incorporate Glenayre's messaging software. During this same time, RIM also obtained a U.S. patent called the BlackBerry Single Mailbox Integration patent, which covered technology that gave users the ability to have a single e-mail address on both wireless and desktop systems (http://www.answers.com/topic/research-in-motion-ltd-usa). The patent applied to the system and method that RIM pioneered for redirecting information between a host computer system and a mobile communications device. Another instance in which RIM was forced to protect its Intellectual Property is RIM vs. Handspring (makers of the Palm Treo). On September 16, 2002, Research in Motion was awarded a patent pertaining to keyboard design on hand-held e-mail devices. Upon receiving the patent, it proceeded to sue Handspring over its Treo device. Handspring eventually agreed to license RIM's patent and avoid further litigation in November of the same year. In recent matters, Research in Motion has acknowledged that it records all employee conversations in the interest of maintaining their intellectual property, per an interview with ZDnet.com au in Sydney. RIM Chief Information Officer Robin Bienfait, during an interview with ZDNet.com.au in Sydney, said that "Everything I have that's on RIM is recorded and retained as RIM. So if they want to have a chat with somebody and it's not a chat that's within RIM's domain, then they may want their own personal device," she said. One would think this is a violation of privacy; however, it is not because the workers are aware of their surveillance. This is similar to policies in place at other large, successful, IT companies. For instance, IBM utilizes a similar policy. Everything that is sent via email or talked about while on company phones by employees, was subject to surveillance. At IBM, it is stated that any patents that came out while one was employed with the company, were basically there (in the software sector) because one was working at IBM. The same goes for RIM; for they are doing business inside of RIM and everything they say or do can be subject to an RIM patent. In addition, this approach minimizes the amount of prereleases of beta devices that circulate around the employees as tests and users. All devices must be hidden in order to prevent people from taking pictures of the new devices and if a breach occurs it is easier to find that leak due to the fact that the devices are constantly monitored. These attempts to monitor and protect Intellectual Property have come about in response to and as a result of the numerous incidences of patent breaches and compromised Intellectual Property.

2. What were some of the industry factors that influenced RIM?
As in many large corporations, especially those in the IT sector, one of the most important factors is to protect the company’s Intellectual Property. By doing this it will prevent the competition from stealing ideas, device schematics, and research and development performed by workers. However, when one tries to impede on another’s Intellectual Property there will be inherent consequences. Case in point: NTP, Inc. vs. RIM. NTP is a Virginia based holding company known for aggressively enforcing its patent rights. As a result of their vigor of enforcement, this court battle came to be when, per NTP, RIM violated its patents covering the use of radio frequency, wireless communications in e-mail systems. A total of 612.5 million dollars was paid in favor of NTP with the jury deciding that RIM did in fact infringe on holding company, NTP’s patents. The situation could have also taken a turn for the worse when an injunction was passed which stated that any injunction against RIM would lock the Waterloo, Ontario-based company out of North America, its largest market . The industry factors that affected RIM are competition, innovation, and ease of use. All blackberry devices are not the flashiest phone or the most app driven devices; however, with embedding of the blackberry suite into the majority of all major US Corporations, it is a winner (for example the US Army Reserves uses blackberry devices). The prime factor that all Blackberry users enjoy is receiving all instant messaging and emails in a single mail box.

3. Apply as many TCOs as you can to the RIM.
The two TCOs that apply to RIM are Importance of Innovation and Protecting Innovation. The importance of innovation is what drives a technology companies’ profits. Without innovation there would be no technological advances. For instance, when the first cell phone came out, it was large and bulky. If it wasn’t for innovation, the cell phone may not have become a staple in everyday life as it is today. With the innovation of adding productivity suites (i.e. windows office and blackberry suite), the user is allowed to be mobile and still work. The protection of innovation applies to RIM because it is what makes the company what it is. RIM’s primary and most beneficial patent at the moment is the “BlackBerry Single Mailbox Integration patent” which is what gives their devices the ease of use to retrieve corporate emails, personal emails, and instant messaging while it streams to a single mailbox.