Users of the popular wireless device BlackBerry may soon find themselves without product or service if the justice system rules to make the popular line of wireless products extinct.
Last week, a hearing was set for Feb. 24 by US District Court judge James Spencer to consider the case for a possible injunction against Research In Motion's BlackBerry. This decision comes after the US Supreme Court decided last week not to hear appeals for NTP's case of patent infringement against BlackBerry. If Spencer rules in favor of the injunction, BlackBerry would be shut down and prevented from continuing sales and service in the United States.
RIM has rebuffed all attempts from media looking for a reaction to the announcement. However, the company released a statement saying, "There are compelling public interests against entry of an injunction, and NTP can be fully compensated through ongoing royalty payments in lieu of an injunction." The case had seemed to be settled with these royalty payments in March when RIM agreed to pay $450 million to NTP, who had taken the Canadian Company (RIM) to court for infringing on several hundred patents. However, on further examination of the agreement document, NTP considered it to be not legal and binding. RIM has since taken NTP back to court to prove that it was in fact binding.
Meanwhile, as BlackBerry teeters on the edge of a possible blackout in America, other wireless developers are waiting to take a bite of the market, which will be saturated with over 4 million people looking to replace their BlackBerry if the company is shut down.
Palm, for one, is rushing to promote the newest in their line of Treo Smartphones. The Treo 700w is currently available through Verizon Wireless for $499.99 with a new 2-year contract. It has a full QWERTY keyboard, a Windows Mobile 5.0.2 operating system, built-in Bluetooth technology, 128 MB of memory and a 1.3 Megapixel camera. Weighing 6.3 ounces, the phone has a talk time of 270 minutes and a standby time of 300 hours. The phone will also take advantage of Verizon Wireless' broadband network, which allows for download times of 400-700 kilobits per second.
Michelle Gilbe, a Verizon Wireless spokesperson for Indiana, said the company is proud of the launch for Palm phone.
"The introduction of the Palm Treo 700w has been very successful," Gilbe said, "We're seeing mobile professionals from a variety of industries take to this hot new device."
Gilbe said the success of the product may be due in part to the new Windows operating system on the phone.
"There's pent-up demand for this device," Gilbe said, "For quite some time, customers have been asking for a Palm Treo smart phone that uses the Windows operating system."
Since this is the first Treo Smartphones to carry Windows as an operating system, Microsoft CEO Steve Ballmer also commented on the release of the phone.
According a press release announcing the phone, Ballmer said, "Businesses worldwide are using mobile devices to increase their competitive advantage, and they need solutions that are scalable, low-cost, and easy to deploy. The Treo 700w showcases the dynamic blend of Palm's innovative design, Verizon Wireless's EV-DO network, and the power of Windows Mobile software to connect professionals to their critical information on the go."
Gilbe could not comment on what could happen to the popularity of the Palm Treo Smartphones if BlackBerry fell, but she did say that both the Palm and BlackBerry phones remain popular.
"Both types of devices are very popular," Gilbe said. "They're also very different. We offer a rich array of smart phones because each customer's personal preference is different, and we want to appeal to a broad range of customers."
She also commented on the feedback Verizon has received from customers confused about which data device to buy and BlackBerry's possible demise.
"We tell prospective customers to select the device that best fits their wireless needs," Gilbe said, "Verizon Wireless offers a number of devices that provide access to wireless e-mail. For existing BlackBerry customers, we are in the midst of developing a contingency plan, but it is too soon to discuss the plan publicly."
Although several analysts have said that a shutdown of BlackBerry is unlikely, the idea that a settlement would be reached is a probable scenario. However, analysts estimate BlackBerry would have to pay between $700 million and $1 billion to get rid of the complaints from NTP for good.
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