The BlackBerry logo located in the lobby of the company's B building in Waterloo, Ont. on Tuesday, May 29, 2018. BlackBerry Ltd. has signed a deal to sell a portfolio what it says are non-core patents related to mobile devices, messaging and wireless networking in an agreement it says could be worth up to US$900 million.THE CANADIAN PRESS/Andrew Ryan
TORONTO – BlackBerry Ltd. has signed a deal to sell a portfolio of what it says are non-core patents related to mobile devices, messaging and wireless networking in an agreement that could be worth up to US$900 million.
The company says Malikie Innovations Ltd., a newly formed subsidiary of Key Patent Innovations Ltd., will pay US$170 million in cash up front and an additional US$30 million in cash by no later than the third anniversary of closing the deal.
BlackBerry will also receive annual cash royalties from the profits generated from the patents that will initially be capped at US$700 million. The cap is subject to an annual increase of an amount equal to four per cent of the remaining portion of the US$700 million that has not been paid to BlackBerry as of the date of the increase.
BlackBerry has transformed itself from a smartphone company to one focused on security software and services.
The portfolio being sold includes about 32,000 patents and applications relating primarily to mobile devices, messaging and wireless networking.
The deal comes after a previously announced patent portfolio sale to Catapult IP Innovations Inc. failed to close after Catapult was unable to secure the required financing
This report by The Canadian Press was first published March 21, 2023.
Companies in this story: (TSX:BB)
