BlackBerry Sells Mobile Patents to Catapult IP Innovations

BlackBerry Sells Mobile Patents to Catapult IP Innovations

After ending support for all of its legacy devices, Blackberry continues to sell its mobile patents–this time to Catapult IP innovations for $600 million. The deal is split as $450 million in cash and a $150 million promissory note.

Under the said deal, Blackberry will be selling its patents related to not just mobile devices, but also messaging and wireless networking. BlackBerry will still retain the license to use the patents, while some of its employees will move to Catapult. “This transaction will not impact customers’ use of any of BlackBerry’s products, solutions, or services,” BlackBerry said in their statement.

In the statement, BlackBerry explained that Catapult was created as a “special purpose vehicle” to acquire BlackBerry’s assets, where its principal funding for the acquisition is a $450 million secured term loan.

Prior to this deal, Huawei did acquire 90 of BlackBerry’s patents a year ago, with most of them being related to security. Aside from security-related patent’s Huawei’s acquisition also include patents on basic functionality like how GPS data is obtained and how text is presented based on the phone’s orientation.

While it has retired from making phones and promoting its BlackBerry Messenger (BBM) business, BlackBerry’s core business today focuses on cybersecurity and software used by automakers.

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