BlackBerry signs a $900 million patent agreement following sale Catapult collapses
BlackBerry Ltd announced on Tuesday that it will sell patents relating mostly to its mobile devices for up to $900 million, following the cancellation of a contract with Catapult IP Innovations Inc.
Malikie Innovations Ltd will purchase the patents for $170 million in cash at the close of the transaction and an additional $30 million three years later.
In addition, BlackBerry will get yearly cash royalties from the sales of the patents, which cover, among other things, its messaging and cellular networking.
A brand-new division of the intellectual property monetisation company Key Patent Innovations Ltd. is called Malikie.
Although the intended agreement with Catapult IP Innovations Inc was taking longer than normal to finish, resulting in a loss of exclusivity, Blackberry stated last year that it was looking into other opportunities to sell its rights.
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The Canadian business said in a statement that Catapult "was unable to achieve funding that would have enabled it to execute the previously announced acquisition on adjusted terms that were acceptable to BlackBerry."
BlackBerry's main businesses today include cybersecurity and software used by automakers, despite once being recognised for its phones with a small QWERTY physical keyboard and the BBM instant messaging service.
The firm ended service for its smartphones in 2022 as a result of years of market share erosion to Apple's iPhones and competing Android handsets.
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After years of losing market share to Apple's iPhones and competing Android handsets, the business ended service for its cell phones last year.
Blackberry announced in February 2022 that it will sell its historical patent portfolio, which mostly included mobile technology, messaging, and wireless networking, to a special purpose corporation created to buy the company's patent assets for $600 million (approximately Rs. 4,490 crore).