[Corbu]

PART 2

Copyright Protectability of Software

Software not meeting the requirements of patent protection, however, is not left without any protection. Any kind of software plus the respective drafts are in principle protectable by copyright, without the need of a registration in any kind of register.

According to section 2(1) No. 1 of the German Copyright Act (GCA) software – or more precisely, the human-readable source code – is protected as a literary work Additionally, sections 69a ff. GCA contain special protection provisions for computer programs which are the transposition of the European Computer Programs Directive (2009/24/EC).

Copyright therefore is the main protection instrument for most software. However, copyright law offers a far less effective protection in contrast to patent law. This is due to the fact that copyright protection only refers to the substantially identical reproduction of the copyrighted subject matter (i.e. normally the source code). Further, according to caselaw by the European Court of Justice, copyright protections for computer programs does not include the functionality of the program. Thus, if an allegedly copyright-infringing computer program has the exact same functionalities but was created without a reproduction of the prior existing program, there is no copyright infringement. The same case could, in contrast, lead to a patent infringement, if the developer of the prior existing program has applied for and was granted a software patent.

It is no coincidence that there are not many high-profile copyright infringement cases regarding software.

Consequences after a patent infringement

Under German law, a patent infringement leads to, among others, claims against the infringer to cease-and-desist and damages. The damages may easily be calculated on the basis of a fictional market standard royalty. This alone may be a good amount of money in the BlackBerry v. Facebook case taking into account the large number of users for the apps.

However, the cease-and-desist claim is generally the more crucial part because it concerns the future business operation. Normally, there are three options to cope with cease-and-desist after a patent infringement.

First, one may simply stop using the patent infringing app at all. This only makes sense commercially, if the patent infringing app is not executable without the patented subject matter and a workaround is not possible or the cost are disproportionate to the benefits.

Second, the patent infringer might obtain a license from the patent owner against the payment of royalties. This, of course, is only an option if the patent owner agrees to license the patent, which is generally not mandatory, except for FRAND-cases.

Third, the patent infringer may workaround the patent infringement. In this case Facebook has opted for this workaround which seems to indicate that the scope of BlackBerry patents are limited for the overall apps.

Sometimes the patent infringer has a fourth option – the counter attack. Facebook has also taken this approach. The counter attack makes sense if the patent could be voided due to the lack of protection requirements (see above).

The beginning of the end of Social Networks?

Clearly this proceeding is not the beginning of the end of social networks. However, even software companies like Facebook and Google must be aware of software patents.

Due to the all-encompassing digitalization and the prevalence of software applications, it must be expected that software patents will increasingly become more and more important. This will not only be a gold mine for "patent trolls" but also for market participants to carve their way to market leadership in software markets. In any case, the BlackBerry v. Facebook case will not be the last of its kind. Don't be scared, but be prepared!

Key Take-Away Points

• Software is only patentable under the same conditions as any other invention. The statutory exceptions for patentability of "computer programs as such" do not exclude "computer implemented inventions" to be granted as a patent. Patent protection offers a large scope of protection and, thus, great economical rewards.

• In general, copyright law provides the protective framework for software, which is harmonized under Union law. However, the easily obtainable protection is rather ineffective in practice.

• The legal consequences of IP infringements comprise of cease and desist and/or damage claims – while the latter may lead to high payment duties, the first may influence the whole future business operation.

• In order to react to cease-and-desist claims, the infringer may choose between three different options, depending on the specific case: to stop using the application, to obtain a license or to create a workaround.

• The fourth option, counter-attacking the patent itself, may be chosen if there is a certain chance that the patent does not meet the protection requirements.


Published by Clifford Chance / Germany
Many thanks to them.

[Dunt Dunt Dunt]

PART 2

Copyright Protectability of Software

From what I read on some other sites... odds aren't very good that BlackBerry will be able to take it much further in Germany. The Regional Court has a history of letting these go through to the higher court, where they rarely survive a nullity trial. It seems to be such an issue that the German legislation bodies are looking into reforms right now (Germany's Regional Court is the Texas of the EU).

There is no word yet on if BlackBerry has posted the almost $1.5 - 2 million dollar deposit required to enforce each injunction at this stage. But it's doubtful, because if Facebook wins then BlackBerry would have to compensate for the damage that Facebook would incurred from the injunctions. Never mind the bad press.... But in the end Facebook says that services will not go down.

I bet the situation in the US cases has made BlackBerry rethink their odds with the case moving on to the Federal Patent Court of Germany.

I expect BlackBerry will get some kind of settlement - but it will be wrapped up in the US settlement and won't be as big as some taught it could be.

[Bacon Munchers]

General positive information:

Has BlackBerry (BB) Outpaced Other Computer and Technology Stocks This Year?
https://old.nasdaq.com/article/has-b...year-cm1263861
Over the past 90 days, the Zacks Consensus Estimate for BB's full-year earnings has moved 40% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger. Based on the most recent data, BB has returned 3.74% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 2.59% on average.

... plus this:

https://finance.yahoo.com/news/did-b...s&guccounter=1

Investors who are in the know are taking a bullish view. The number of long hedge fund bets went up by 3 recently. Our calculations also showed that BB isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video at the end of this article for Q2 rankings). BB was in 28 hedge funds' portfolios at the end of the third quarter of 2019. There were 25 hedge funds in our database with BB holdings at the end of the previous quarter.

[bizorkan09V]

As tracking BB share stock,today's price is 6.66$
Changed by : 0.00%

[Corbu]

BlackBerry Loses Bid to Revive Patent in Google Lawsuit

2020-01-13 14:55:24.938 GMT

By Christopher Yasiejko

(Bloomberg) -- Appeals court, without issuing formal opinion, affirms U.S. Patent Trial and Appeal Board decision that BlackBerry patent 8,402,384 is invalid.

* PTAB had agreed with petitioner Google that the patent was an obvious variation of old ideas
* Patent covers graphical user interface including a dynamic bar for displaying preview information
* Patent was part of patent-infringement suit BlackBerry filed in 2016 against BLU Products; that case was dismissed in April 2017
* CASE: Blackberry Ltd. v. Google LLC, 19-1145, U.S. Court of Appeals for the Federal Circuit

[Dunt Dunt Dunt]

BlackBerry Loses Bid to Revive Patent in Google Lawsuit

2020-01-13 14:55:24.938 GMT

By Christopher Yasiejko

(Bloomberg) -- Appeals court, without issuing formal opinion, affirms U.S. Patent Trial and Appeal Board decision that BlackBerry patent 8,402,384 is invalid.

* PTAB had agreed with petitioner Google that the patent was an obvious variation of old ideas
* Patent covers graphical user interface including a dynamic bar for displaying preview information
* Patent was part of patent-infringement suit BlackBerry filed in 2016 against BLU Products; that case was dismissed in April 2017
* CASE: Blackberry Ltd. v. Google LLC, 19-1145, U.S. Court of Appeals for the Federal Circuit

There were two cases 19-1145 and 19-1146.... both against Google. Wonder how the other went?

[_dimi_]

It seems that 30th of January is going to be an important date in BlackBerry's case against Facebook. From what I understand from the filings, a hearing will take place on that day to discuss the case going forward. Facebook is hoping that trial is delayed until the PTAB have published a final verdict on the numerous IPR petitions that were filed. BlackBerry wants trial to go ahead because it has already taken too long, and because there's no guarantee that the PTAB's verdict will be any different from the outcome when it goes to trial.

Read BlackBerry's opposition here:
https://www.courtlistener.com/docket...-facebook-inc/

I believe that the judge's decision could be a really crucial moment as a case usually does not make it to trial, but is often settled weeks or days before the trial starts. Anyway, BlackBerry mentions in this document that trial is only weeks away. So even if it proceeds to trial, we should know much more fairly 'soon'.

On a different (but related) note, I read the RBC report and felt like a fool not having noticed BlackBerry's growing cash position. RBC estimates a net cash position of +/- 532 million by november of this year. So, even without a big settlement from Facebook, I think JC will be buying back that convertible bond so there's no (or minimal due to bonuses) dilution for the shareholders.

Hopefully we'll also soon witness the benefits that come with compounded annual growth rates.... and then this will take off for good?! :-)

[Chuck Finley69]

It seems that 30th of January is going to be an important date in BlackBerry's case against Facebook. From what I understand from the filings, a hearing will take place on that day to discuss the case going forward. Facebook is hoping that trial is delayed until the PTAB have published a final verdict on the numerous IPR petitions that were filed. BlackBerry wants trial to go ahead because it has already taken too long, and because there's no guarantee that the PTAB's verdict will be any different from the outcome when it goes to trial.

Read BlackBerry's opposition here:
https://www.courtlistener.com/docket...-facebook-inc/

I believe that the judge's decision could be a really crucial moment as a case usually does not make it to trial, but is often settled weeks or days before the trial starts. Anyway, BlackBerry mentions in this document that trial is only weeks away. So even if it proceeds to trial, we should know much more fairly 'soon'.

On a different (but related) note, I read the RBC report and felt like a fool not having noticed BlackBerry's growing cash position. RBC estimates a net cash position of +/- 532 million by november of this year. So, even without a big settlement from Facebook, I think JC will be buying back that convertible bond so there's no (or minimal due to bonuses) dilution for the shareholders.

Hopefully we'll also soon witness the benefits that come with compounded annual growth rates.... and then this will take off for good?! :-)

What reason to wipe out cash position when cash buffer would offset anyway. The Street doesn’t penalize or reward for net zero result when debt rates are cheap.

[_dimi_]

What reason to wipe out cash position when cash buffer would offset anyway. The Street doesn’t penalize or reward for net zero result when debt rates are cheap.

Even when Watsa's cash would result in dilution once the bond gets converted to shares?

Besides, not paying any interest to Watsa does make a difference to BlackBerry's bottom line.

[Chuck Finley69]

Even when Watsa's cash would result in dilution once the bond gets converted to shares?

Besides, not paying any interest to Watsa does make a difference to BlackBerry's bottom line.

Not sure of the exact conversion terms but I suspect not required yet. Conversion only makes sense with shares above certain price. But if converted, that wouldn’t hurt BlackBerry cash position. If not converted, then continue paying interest.

BlackBerry executives have an obligation to keep BlackBerry, the company healthy. Their cash position and debt @ 50/50 would be expected by the markets. If refinancing the debt gets a lower rate, than it would then make sense.

The preferred issue probably has some prepayment conditions that discourages. Fairfax, has structured as typical bear hug. Another reason share price won’t see upside much.

[_dimi_]

Not sure of the exact conversion terms but I suspect not required yet. Conversion only makes sense with shares above certain price. But if converted, that wouldn’t hurt BlackBerry cash position. If not converted, then continue paying interest.

BlackBerry executives have an obligation to keep BlackBerry, the company healthy. Their cash position and debt @ 50/50 would be expected by the markets. If refinancing the debt gets a lower rate, than it would then make sense.

The preferred issue probably has some prepayment conditions that discourages. Fairfax, has structured as typical bear hug. Another reason share price won’t see upside much.

We'll just have to agree to disagree

[Chuck Finley69]

We'll just have to agree to disagree

I’m not agreeing or disagreeing with anything. I’m not speaking from a shareholder perspective just simply, from a company (BlackBerry) perspective. As the company (or any other) exists, it has legal entanglements. I’m pretty sure the preferred issue was set up in a similar manner that Berkshire Hathaway uses as well.

This would also explain why analysts recently seem to be dropping coverage. It’s as if the BlackBerry is operating as controlled Fairfax subsidiary.

Shareholders, other than institutional, hope for one thing, and I’m merely pointing out that I’d be careful with those expectations.

[rarsen]

As always somewhat careful with articles from The Motley Fool, and may explain part of the rise in BB today.

Why Did Amazon Just Team Up With BlackBerry?
https://www.nasdaq.com/articles/why-...rry-2020-01-14
AWS is already the world's top cloud platform, so it makes perfect sense to integrate its IoT service into the most widely used embedded operating system for connected cars. AWS's expansion into connected cars could boost the unit's revenue and operating profits over the next few years. AWS is Amazon's most profitable division, and the unit's growth subsidizes the expansion of Amazon's lower-margin marketplace businesses. AWS also faces intense competition from Microsoft's Azure in the cloud platform market -- partnering with BlackBerry could widen its moat against its toughest challenger.
Amazon's partnership with BlackBerry won't boost either tech company's near-term revenue. However, it reinforces BlackBerry's market-dominating position in embedded operating systems for connected cars and expands AWS's reach into the automotive market. Those moves should benefit both companies over the long term as more connected and driverless cars hit public roads.

[EchoTango]

As always somewhat careful with articles from The Motley Fool, and may explain part of the rise in BB today.

Why Did Amazon Just Team Up With BlackBerry?
https://www.nasdaq.com/articles/why-...rry-2020-01-14
AWS is already the world's top cloud platform, so it makes perfect sense to integrate its IoT service into the most widely used embedded operating system for connected cars. AWS's expansion into connected cars could boost the unit's revenue and operating profits over the next few years. AWS is Amazon's most profitable division, and the unit's growth subsidizes the expansion of Amazon's lower-margin marketplace businesses. AWS also faces intense competition from Microsoft's Azure in the cloud platform market -- partnering with BlackBerry could widen its moat against its toughest challenger.
Amazon's partnership with BlackBerry won't boost either tech company's near-term revenue. However, it reinforces BlackBerry's market-dominating position in embedded operating systems for connected cars and expands AWS's reach into the automotive market. Those moves should benefit both companies over the long term as more connected and driverless cars hit public roads.

I saw this move as Blackberry joining rather than resisting a dominant player. Historically, Blackberry has always "gone it alone" on its platforms and technologies which was initially very successful for Blackberry but ended up making them into a remote island. I further saw this as Blackberry growing up and finally realising they can't always run all alone in a market that is so intimately connected.

I hope this is prelude to more high level partnerships and.......is another revenue engine.

[DeRedder]

It appears as if some people wouldn't be able to tell good stock from bad stock even if their very lives depended on it.. (that was not a jab at some members possibly dying). Imagine that, wishing for years for a company to fail, while praying for BBRY to get back. Just for the very opposite happing

https://www.strategyanalytics.com/st...d=991376&spg=1

[smithm565]

BlackBerry led Canadian tech firms in U.S. patent grants last year

https://www.bnnbloomberg.ca/blackber...year-1.1374401

[smithm565]

Nice commitment from Hyundai & Kia:

https://www.forbes.com/sites/sebasti.../#693f7d6a390d

https://arrival.com/news/blackberry

[W Hoa]

On Our Radar: How Blackberry Redefined Visibility for the Transportation Sector

https://www.globaltrademag.com/on-ou...tation-sector/

[rarsen]

Expecting an above average return from the stock in the next few months.

BlackBerry (BB) Up 15.8% Since Last Earnings Report: Can It Continue?
https://old.nasdaq.com/article/black...inue-cm1267741

[EchoTango]

On Our Radar: How Blackberry Redefined Visibility for the Transportation Sector

https://www.globaltrademag.com/on-ou...tation-sector/

A great article extolling the virtues of BB's Radar product and it's recent wins. Too bad it was written by the Blackberry Radar product head which must then relegate this piece to mostly propaganda.

I just wish product efforts like this would add materially to Blackberry's bottom line.

[Dunt Dunt Dunt]

A great article extolling the virtues of BB's Radar product and it's recent wins. Too bad it was written by the Blackberry Radar product head which must then relegate this piece to mostly propaganda.

I just wish product efforts like this would add materially to Blackberry's bottom line.

Never really been a fan of Radar... Too many other companies doing this, and it really seems the only one that probable makes money on it is the one providing the cell service.

I suspect Chen's hope was Radar was a project to drive attention to their IoT solutions. Kinda a loss leader of sorts.

But hey, in a way it does keep them in hardware.

[rarsen]

OT general information:

Samsung mobile has a new boss to defend the Galaxy from Apple and Huawei
https://www.msn.com/en-ca/news/techn...?ocid=msedgdhp
Samsung might be looking to take advantage of the US’s ban on Huawei gear, including 5G networking components, to become a major player in networking in the coming years.

[Corbu]

https://www.prnewswire.com/news-rele...300988138.html
BlackBerry Cylance Integrates with SafeBreach to Deliver Automated Enterprise Endpoint Security Validation

[Hazo]

https://www.prnewswire.com/news-rele...300988138.html
BlackBerry Cylance Integrates with SafeBreach to Deliver Automated Enterprise Endpoint Security Validation

And as expected, another drop in share price...sigh.

[EchoTango]

At the risk of being slightly off topic I was reminiscing about the glory days of Crackberry when Blackberry was a major player in the mobile communication market and even the glimmer that TCL/Blackberry Mobile temporarily created with the licensed devices. Today Crackberry has to be wondering what place they have in the future of Blackberry without ANY consumer products at all. I suppose they can move to commenting on Cylance products and being an archive for all us BB10 dinosaurs but beyond that, what content will they host ?

Kevin's participation has declined to the point where he is now nowhere to be found. I remember his "return" to work with Blackberry Mobile in launching the Android based "Key" products and his optimism was palpable. I suspect he has found other subjects to provide commentary on and has moved on for good..... and who could blame him ?

It would be a truly sad day if Crackberry ever closes its doors and Blackberry dedicated sites/forums like this one ceases to exist.