BlackBerry is getting rid of its patents for mobile devices, messaging services and wireless networks. The patents have been transferred to Catapult IP Innovations, for $600 million.
Catapult IP Innovations is buying BlackBerry’s patent portfolio of discontinued services. The buyer may not immediately ring a bell. Fortunately, BlackBerry itself clarifies who the buyer is: “a specially created institution set up to acquire the BlackBerry patents.”
Payoff
According to the press release, the purchase amount of $600 million, will be split into two payments. $450 million will be paid immediately in cash. Catapult accomplishes that by taking out a loan for $400 million. The remaining $150 million will be repaid to BlackBerry in pieces, with the first payment due within three years.
At a stroke, the loan turns Catapult into a company with a lot of debt, with no products to sell. It is now up to Catapult to turn the patents on BlackBerry cell phones, qwerty keyboards on cell phones and BlackBerry Messenger into cash. Probably the only way to do that is to sue anyone who seems to be flouting the patents.
Final ending
BlackBerry’s heyday in the cell phone market had been behind the company for a while. BlackBerry just let everything drag on for a while longer. Late last year, the company decided to finally pull the plug on texting, calling and data features on its own mobile and tablet devices. On Jan. 4, 2022, the end was effectively there.