After the Canadian software company BlackBerry Ltd. decided to back out of a previous agreement with Catapult IP Innovations Inc., BlackBerry Ltd. announced on Tuesday that it would sell patents, most of which were connected to BlackBerry’s mobile devices, for up to $900 million.
Malikie Innovations Ltd. will acquire ownership of the patents in exchange for a cash payment of $170 million upon the transaction’s completion and an additional cash payment of $30 million three years later. Additionally, BlackBerry will be eligible to receive yearly cash royalties from the profits generated by the patents, which include patents related to its messaging and wireless networking, amongst others.
The intellectual property monetisation company Key Patent Innovations Ltd. has recently established a new business entity known as Malikie.
Because the planned transaction with Catapult IP Innovations Inc. was taking longer than usual to complete, Blackberry announced the previous year that the company was investigating other options to sell its patents because the loss of exclusivity that resulted from the delay was significant.
According to a statement released by the Canadian company, “Catapult was unable to secure financing that would have enabled it to complete the previously announced transaction on amended terms that were acceptable to BlackBerry.”
BlackBerry was once well-known for its phones that featured a miniature QWERTY keyboard and the BBM instant messaging service. These days, however, the company’s primary industries are cybersecurity and the development of software for automobile manufacturers.
