NTP Rejects BlackBerry Maker’s Settlement Offer

Patent holding company NTP Inc. has rejected an offer by BlackBerry maker Research in Motion Ltd. to settle their legal battle and the two sides are not negotiating, NTP co-founder Don Stout said Friday.

Stout said RIM made an “unacceptable” written offer Thursday to settle NTP’s patent infringement lawsuit, which could shut down the popular BlackBerry e-mail service in the U.S.

“They have responded yesterday in a manner which is unacceptable, so we’re not negotiating,” Stout said. “We’re not sitting down trying to work out details. In other words, they didn’t come close.

“They might make another counteroffer. I don’t know. That may be coming,” Stout added. “But the current offer is unacceptable and not one we’re going to negotiate.”

Waterloo, Canada-based RIM did not immediately comment.

Stout, who is also a patent lawyer, said he wanted to curb false speculation that the two sides were close to a deal. RIM’s stock at one point gained more than 7% on Friday amid growing investor hopes for a settlement.

RIM shares closed up $3.38, or 5.6%, at $64.13.

Arlington, Va.-based NTP successfully sued RIM for patent infringement in 2002. It won an injunction the following year to halt U.S. sales of the BlackBerry device and service. The injunction was stayed pending the appeal process, which has largely been exhausted.