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Date:01/09/11

Openwave claims Apple, RIM infringe mobile Internet patents

Openwave Systems Inc. has filed complaints with the International Trade Commission against Apple Inc. and Research In Motion Ltd., alleging the companies infringed on patents tied to how mobile devices communicate over the Internet.

Redwood City, Calif.-based Openwave said in its filing that Apple's iPhone and RIM's BlackBerry products had infringed on its patents, including methods for regularly updating applications with new information from the Internet as well as ways for storing email on a device.

Openwave Chief Executive Ken Denman said his company had approached both Apple and RIM prior to filing its legal complaints, but had not received a "substantive response."

"We felt compelled," he said, noting that his strategy for the company since taking the helm in 2008 was to make more money from its patents."It is very important that parties who create art and technology are able to get a return on it."

Apple declined to comment. RIM didn't immediately respond to a request for comment. Openwave's filing is the latest in a series of lawsuits in the technology industry that has mushroomed as sales of smartphones and tablet computers continue to grow. Nearly all mobile-device makers are either actively suing a competitor or defending themselves in court.

Openwave's shares hit a 12-month low of $1.17 earlier this month in the wake of disappointing quarterly results, but rose nearly a third Wednesday to close at $1.91.

The software maker wants the ITC to bar imports of smartphones and tablet computers that allegedly infringe Openwave patents, including Apple's iPhone 3G, iPhone 3GS, iPhone 4, iPod Touch, iPad and iPad 2; and RIM's Blackberry Curve 9330 and Blackberry PlayBook.

The filing comes on the heels of a patent settlement Openwave announced on Monday with Myriad Group AG in which Openwave paid $12 million to Myriad for uncontested ownership of a portfolio of mobile Internet-related patents.

At the time of the announcement, Openwave said it would pursue ways to make money off its intellectual property.

The company also said it is in talks with a number of other technology titans concerning their potential infringement of Openwave patents.

Earlier this month, Openwave reported its fiscal fourth-quarter loss widened as revenue fell 19%, along with a nearly 20% slashing to the work force.



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