BlackBerry appears to promote majority of its patents as it ...

visitors attend the Blackberry booth at the cellular World Congress in Barcelona, Spain on Feb. 25, 2019.

Rafael Marchante/Reuters

Canada's largest patent holder, BlackBerry Ltd., is calling to unload most of its highbrow property in a deal that may mark one other turning point for the fallen former smartphone huge.

but it might additionally deal an immense setback to Ottawa's innovation approach efforts, marking the second time in a decade that positive IP assets from one among Canada's leading research-and-building-pushed organizations have been offered off. If, as anticipated, a deal outcomes in ownership of tens of thousands of BlackBerry patents passing into international arms, property probably value lots of of millions of greenbacks whose advent were partially backed through federal research and development tax credits co uld go away the nation together with prospects of generating any extra improvement to the economy.

The Globe and Mail has demonstrated a file last week by way of IP industry journal IAM that BlackBerry these days begun looking nearly all of its 38,000 patents to fascinated parties. Tech+IP Capital, LLC, a U.S. investment banking enterprise, is dealing with the sale for BlackBerry.

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A source typical with the condition informed The Globe the enterprise isn't certain what rate it's going to get, nevertheless it's believed the portfolio can be price more than US$450-million - a major measurement for a deal in the world patent exchange, however a fraction of the U.S.$4.5-billion a consortium led by using Apple Inc. Apple Inc. paid in 2011 for a trove of 6,000 Nortel Networks patents. The Globe is not deciding on the supply as they are not authorized to talk publicly on the be counted.

A BlackBerry spokesman declined remark, announcing the Waterloo, Ont. enterprise "does not comment on hearsay or speculation."

The patents up for sale include IP in areas the place BlackBerry become a trailblazer however isn't any longer a participant, reminiscent of cellular instant messaging and social collaboration tools. The business has several thousand greater patents it's expected to preserve as a result of they underlie its latest corporations, which consist of cybersecurity and building computing device working programs for automobiles,

CEO John Chen, who has been making an attempt to turn BlackBerry round for the reason that he was appointed in November, 2013, has been managing the exit of the enterprise from the smartphone company, cutting charges and moving into new utility businesses. however the business's share rate has been risky, and sits at US$5.29 on the new york inventory trade after hitting a excessive of more than double that in early 2018.

One consistent brilliant spot has been the business's skill to generate revenues and gains from its patents by using pursuing licensing offers with different corporations, customarily by way of negotiating with businesses it maintained have been the use of its IP, or with the aid of suing businesses reminiscent of facebook, Twitter and Snap it referred to owed the enterprise for the privilege.

BlackBerry's patent portfolio is "giant, diverse and deep, that means that within the hands of a savvy proprietor, it's extraordinarily effective," mentioned Waterloo-based IP lawyer Jim Hinton.

BlackBerry has generated a bounty of revenues and gains in fresh years from its patents by way of pursuing licensing deals with oth er enterprises – customarily via negotiating with groups it maintained had been the usage of its IP, or via suing groups comparable to fb, Twitter and Snap it pointed out owed the business for the privilege.

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BlackBerry generated US$328-million in "licensing and different" profits last 12 months – over 31 per cent of total income – and US$1.1-billion over the last five years. The licensing enterprise has remained probably the most few vivid spots for the company all the way through the COVID-19 pandemic, despite the fact the inconsistency and unpredictability of licensing offers mean the business isn't thoroughly valued by using public shareholders.

"Licensing and different" revenue in the business's 2nd quarter ended Aug. 31 amounted to US$108-million – 42 per cent of BlackBerry's complete and neatly forward of expec tations – and helped it bring a stronger-than-anticipated profit of US11 cents a share. Licensing revenues are anticipated to surpass US$250-million this fiscal year.

A sale of most BlackBerry patents would outcomes in "a pointy exchange of company route because they've been reasonably a success licensing their portfolio," noted Louis Carbonneau, CEO with Tangible IP, a Seattle patent brokerage and strategic advisory company.

but "it's bad information either approach" for Canada, he spoke of, since the patents stay right here and the government has subsidized BlackBerry's analysis and construction over the years.

"You've got 40,000 patents that definitely can be owned surely by a non-Canadian business," probably a economic firm that focuses on accumulating patents and pursuing licensing deals, referred to Mr. Carbonneau, a Canadian who has pushed Ott awa to connect strings to IP developed with taxpayer money in order that some advantages continue to be right here even after a sale.

different industry consultants pointed out a sale of BlackBerry's patents would deal a blow to the country's standing at a time when the government has been making initial steps to enrich Canada's negative recognition for commercializing ideas. BlackBerry is considered one of Canada's desirable 20 spenders on research and development and was #1 a decade in the past.

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"The sale of a large BlackBerry patent portfolio would knock Canada down further within the international patent ownership rankings," said Natalie Raffoul, an Ottawa-based mostly patent lawyer who referred to BlackBerry is the only real Canadian company among the many world's top one hundred patent holders. "Given the financial cost of IP and statistics property these days, Canadian government leaders and coverage makers should perk up to this fact that we continue to lose floor on possessing these constructive property. "

Mr. Hinton known as BlackBerry "the lone Canadian standout in the world arms race for IP accumulation" even after it stopped making smartphones. A patent sale would leave Canada "protecting no huge place in a world patent market that represents essentially the most valuable property these days. I question whether the executive may still step in to make certain that crucial [publicly funded] IP assets aren't being offshored for economic and countrywide protection reasons."

John power, a spokesman for Innovation, Science and business Minister Navdeep Bains said, "we're unable to comment on speculation involving business transactions." however Mr. vigor delivered that, "when we seem to the realm stage to be t aught from other a hit innovation nations, it is obvious that no innovation plan is finished without clear guide for and knowing of the strategic use of highbrow property."

With information from Josh O'Kane

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