Blackberry maker Research In Motion has settled a long-running patent dispute with California-based Visto.
Under the definitive agreement, the Ontario-based RIM would pay $267.5m to settle all outstanding worldwide patent litigations between the two companies. It will receive a perpetual and fully-paid license on all Visto patents and transfer of certain intellectual property from Visto.
Earlier, Wireless e-mail company Visto sued RIM in a Texas court for patent infringement in 2006. In its lawsuit, Visto said that RIM used its technology without approval. RIM also filed a counter claim and again the two companies exchanged several additional lawsuits in the US, Canada and Europe.
RIM expects to report majority of the payment to be expensed as an unusual item in the second quarter of fiscal 2010. The remainder being classified as an intangible asset, the company said.
The settlement is expected to be completed during the week of July 20, 2009 and is subject to certain closing conditions.
