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NTP v. RIM: Developments in Infringement Liability Where a Significant Component Is Located Outside the U.S.

By John E. Daniel and Jonathan S. Caplan

Companies involved with technologies that use components located both within and outside the United States will be interested in a recent decision in the patent infringement action brought by NTP, Inc. (“NTP”) against Research In Motion, Ltd. (“RIM”). In August 2005, the U.S. Court of Appeals for the Federal Circuit distinguished between infringement of “system” and “method” patent claims in “out of country” situations. The Federal Circuit held that if a component is located outside the United States, a system claim would be infringed if there is beneficial use of the patented system in the United States, while a method claim would not be infringed.

The hotly contested litigation between NTP and RIM has been closely watched by those interested in patents relating to the now ubiquitous wireless e-mail technology. The dispute has been the subject of numerous articles, many focusing on the impact of the litigation on the high-profile Blackberry' handheld device manufactured by RIM.

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