Following a court order that could prevent the company from selling its bread-and-butter BlackBerry communications device, Research In Motion released the latest version of the product Monday.
A court order last week forces RIM to file an appeal in an ongoing patent dispute with NTP, a holding company based in Arlington, Virginia, or halt all BlackBerry sales. Despite that ruling, RIM teamed up with T-Mobile USA to launch the BlackBerry 7230: a full-color device that lets customers make and receive cellular phone calls and view Web content, as well as manage e-mail.
The device, which T-Mobile plans to sell for $400 with a voice plan and an additional $30 per month for unlimited data use is, by far, RIM's most robust product.
Even users of the older BlackBerry devices who anxiously follow news of RIM's legal woes gave the new BlackBerry two thumbs up.
"That device will be the king of all devices," said Charles Gautreaux, an infrastructure analyst at Duke Energy. "It's a very nice device."
Gautreaux, whose company has purchased 750 BlackBerry devices in the last two-and-a-half years, said he initially was surprised by last week's ruling. But RIM reassured him that his service would not disappear.
"They don't expect to be shut down," Gautreaux said. "With the new technologies and the new features coming out that we are testing, I would imagine the number of BlackBerries we will support will actually grow."
Analysts also don't expect businesses to sever their ties with RIM because of the recent court ruling. But it may make potential customers look the other way, said Forrester Research analyst Charles Golvin.
"Generally these kinds of patent lawsuits get settled by payment or the exchange of intellectual property licenses," Golvin said. "Rarely do they take a business down."
"I wouldn't imagine (a current customer) making a big decision on this legal decision," he said. "But I can imagine a customer who is not committed possibly going in the other direction."
RIM co-CEO Jim Balsillie said he is confident the appeals court will toss out the judge's decision. Because NTP's patents are so broad and cover any device that sends e-mail over a wireless device, the decision as it stands today could invite a barrage of lawsuits and set a bad precedent for the wireless industry, Balsillie said.
"It's not just a RIM-specific issue," he said. "They absolutely plan to sue other providers as well."
James Wallace, the attorney representing NTP, hasn't ruled out future lawsuits. And, so far, he's got the upper hand in the RIM case.
Besides ruling in favor of the injunction, U.S. District Court Judge James Spencer ordered RIM to pay NTP $53.7 million in damages, attorney fees and interest. The ruling follows a May 23 court decision to deny RIM a new trial.
NTP, which has never developed a product and is simply a holding company for patents filed by Thomas J. Campana, Jr. of Chicago, won a trial by jury in November of last year. The federal court in Richmond, Virginia, found that RIM infringed on five of NTP's patents and awarded NTP $23 million in damages.
If RIM loses its appeal, it must cease selling BlackBerry devices in the United States, sales which account for about 80 percent of the company's revenues.
"It's very substantial," Golvin said.
However, the appeals process could take anywhere from 18 months to two years, giving RIM some breathing room.
RIM shares (RIMM) rose slightly Tuesday, closing at $25.12.
