May 12, 2023
BlackBerry has completed the successful sale of its non-core patents and patent applications to Malikie Innovations Limited, a wholly owned subsidiary of Key Patent Innovations Limited.
BlackBerry got a cash payment of $170 million upon completion of the transaction, according to the terms of the agreement. The transaction includes the transfer of about 32,000 non-core patents and applications, but not those required to support BlackBerry’s core business activities.
Importantly, BlackBerry will keep all existing revenue-generating agreements as well as about 2,000 patents, with a primary focus on mobile devices and standards considered vital. The purchase is not subject to financing constraints, and cash has already been obtained from a U.S.-based investment group with over $30 billion in assets under management.
Furthermore, BlackBerry will be entitled to yearly monetary royalties based on the income produced by its patents. The royalties will be computed in tiers: 8% on the first $500 million in revenues, 15% on the next $250 million, 30% on the next $250 million, and 50% on any profits above that.
The deal has no bearing on how BlackBerry’s products, solutions, or services are used. The sale of non-core patents, on the other hand, allows BlackBerry to focus on offering intelligent security software and services to global organizations and governments.
The sources for this piece include an article in NewsWire.
