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NTP v. RIM: Developments in Infringement Liability Where a Significant Component Is Located Outside the U.S.
Companies involved with technologies that use components located both within and outside the United States will be interested in a recent decision in the patent infringement action brought by NTP, Inc. (“NTP”) against Research In Motion, Ltd. (“RIM”). In August 2005, the U.S. Court of Appeals for the Federal Circuit distinguished between infringement of “system” and “method” patent claims in “out of country” situations. The Federal Circuit held that if a component is located outside the United States, a system claim would be infringed if there is beneficial use of the patented system in the United States, while a method claim would not be infringed.
The hotly contested litigation between NTP and RIM has been closely watched by those interested in patents relating to the now ubiquitous wireless e-mail technology. The dispute has been the subject of numerous articles, many focusing on the impact of the litigation on the high-profile Blackberry' handheld device manufactured by RIM.
NTP is a Virginia-based patent holding company that sued RIM for infringement of five patents related to integrating existing e-mail systems with wireless communications systems. Each of NTP's patents-in-suit originated from a single “parent” patent application and together include more than 1900 patent claims directed to systems and methods for wireless e-mail technology. Such claims include those that recite systems for transmitting information between electronic mail systems over a wireless network using an interface switch and methods for transmitting information between electronic mail systems over a wireless network via an interface.
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