NTP Files Patent Lawsuit Against Palm

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NTP has just filed a patent infringement lawsuit against Palm, Inc. This alleges that Palm is infringing on NTP patents related to mobile devices wirelessly exchanging email.

NTP is perhaps best known as the company that got Research in Motion (RIM) to pay over $600 million to settle a similar lawsuit.

The company, which makes no products and whose only assets are patents, says it files this suit only after asking Palm to license its patents, and "would still prefer to resolve this issue with Palm in a negotiated license agreement that is fair and reasonable to both parties.”

Palm itself has not yet commented on the lawsuit. Its share price has dropped over 7 percent since this news came out.

Are the Patents Valid?

One thing that’s going to have a major effect on this lawsuit is that the patents in question are under review by the U.S. Patent and Trademark Office.

Although the Patent Office has not yet declared invalid the wireless email-related patents held by NTP, it said last December that it is likely to do so.

"The patent owner’s arguments are deemed nonpersuasive," the Patent Office wrote. "The next office action is expected to be a final rejection of all current claims."

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