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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n