Just when you think it couldn’t get any worse for Research In
Motion Limited (NASDAQ/RIMM), the company seems to find a
way to disappoint. In addition to a poor quarterly earnings
report and a gloomy forecast, the company now has been found
liable for $147.2 million for patent infringements against Mformation Technologies Inc. With the market view for Research In Motion (RIM) being so poor to begin with, one possible positive was its number of patents, which might be the saving grace for the
firm. However, it appears its patent portfolio isn’t as strong as the market view had
initially thought. The goal of technology stocks is differentiation through innovation. It
appears that RIM’s software, “BlackBerry Enterprise Server,” has been infringing on
existing patents. This puts an even gloomier market view on what its patent portfolio is
really worth. It appears that during negotiations for licensing, Mformation alleged that RIM simply
turned down the licensing agreements and went ahead incorporating patented
software into its own Enterprise software. Apparently the jurors agreed with
Mformation, which leads me to wonder how RIM thought it could get away with such a
blatant disregard for the legal system...
RIM has been out of touch with what the market wants for the past few years, and it
shows. Yes, RIM is trying to cut costs by laying off 5,000 people, but management
should have realized the company was far behind other technology stocks a long time
ago and adjusted its cost base then. RIM’s shipment of phones for the quarter was only
7.8 million, as compared to 13.2 million BlackBerry units shipped during last year’s
quarter, a drop of 40%! Technology stocks can’t continue to exist at that pace of decline.

Does any blackberry user still want to argue?

Source: www.investmentcontrarians.com/stock-market/more-problems-for-rim/357/

Rim is a dead company. they av lost control of smartphone market .is not over yet for them though. am waiting to see if blackberry 10 will revive RIM