BlackBerry sells mobile and messaging patents for $600 million
BlackBerry sells mobile and messaging patents for $600 million
The buyer, "Catapult IP Innovations," will have to monetize these patents somehow.
BlackBerry is adding another sad chapter to the downfall of its smartphone business. Today, the company announced a sale of its prized patent portfolio for $600 million. The buyer is "Catapult IP Innovations Inc.," a new company BlackBerry describes as "a special purpose vehicle formed to acquire the BlackBerry patent assets."
BlackBerry says the patents are for "mobile devices, messaging and wireless networking." These are the patents surrounding BlackBerry's phones, QWERTY keyboards, and BlackBerry Messenger (BBM). BlackBerry most recently weaponized these patents (which covered ideas like muting a message thread and displaying notifications as a numeric icon badge) against Facebook Messenger in 2018. That was nothing new for BlackBerry, which is a veteran of the original smartphone patent wars. Back when BlackBerry was still called RIM, it went after companies like Handspring and Good Technology in the early 2000s.
If the name "Catapult IP Innovations" didn't give it away, weaponizing BlackBerry patents is the most obvious outcome of this deal. According to the press release, Catapult's funding for the $600 million deal is just a $450 million loan, which will immediately be given to BlackBerry in cash. The remaining $150 million is a promissory note with the first payment due in three years. That means Catapult is now a new company with a huge amount of debt, no products, and no cash flow. Assuming the plan isn't to instantly go bankrupt, Catapult needs to start monetizing BlackBerry's patents somehow, which presumably means suing everyone it believes is in violation of its newly acquired assets.
