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Back away from the BlackBerry

Carel Alberts
By Carel Alberts, ITWeb contributor
Johannesburg, 09 Dec 2005

Gartner warns that a patent suit could shut down BlackBerry`s maker in the US and affect some SA companies` local and roaming use of the device.

Gartner has advised its clients to halt deployment of the popular BlackBerry PDA, pending "clarification of its manufacturer`s legal position" in a patent tussle with NTP.

Although a settlement between the duelling firms is reportedly expected within three weeks, the outcome of the fight could be a shutdown of BlackBerry maker Research in Motion`s (RIM`s), operations in the US. It could also render the device useless with SA companies that rely on BlackBerry systems of parent companies in the US, says Stuart Hardy, MD of LayerOne, a South African agent for a competitor product (IntelliSync).

NTP contends that it owns patents for the technology that powers BlackBerry. According to some reports, it has already won an injunction that would force RIM to "shut down its US operations". Other reports say the injunction is "possible".

Gartner`s research note advises companies to "stop or delay all mission-critical BlackBerry deployments and investments until RIM`s legal position is clarified", because "US users would lose messaging services...and international users would lose message service while travelling in the US".

Moreover, says LayerOne`s Hardy, SA companies that rely on US deployments will also lose the service if the tussle should end in NTP`s favour.

A settlement would be in both companies` interests, says Gartner. It notes that RIM`s plan to by-pass the patent through a workaround could be "highly problematic", practically and possibly also legally. The research firm demands RIM discloses these plans.

Joash Chellan, senior manager: business solutions at MTN - which along with Vodacom markets BlackBerry, says it is currently business as usual. "We`re still pursuing sales; nothing has fundamentally changed. Of course we`re cautious, and it is incumbent on MTN to let any potential customers know of the situation, but we`ve had direct assurances from RIM not to be overly concerned. [Since BlackBerry clients` relay servers are situated in the UK] we believe there is not as much cause for concern as Gartner has intimated."

RIM shares hit a five-week low on Wednesday, falling 1% (44 US cents), to $61.51 (Nasdaq), reports ZDNet. An analyst is quoted as blaming growing knowledge of the Gartner report.

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