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Company News

UPDATE 2-Motorola files U.S. ITC complaint against RIM

 * Says RIM infringes five Motorola products
 * Looks to bar U.S. sale of infringing products
 * Motorola: Most Rim phones are infringing
 (Adds Motorola comment, adds that RIM declines comment)
 NEW YORK, Jan 22 (Reuters) - Motorola Inc MOT.N has asked
U.S. regulators to bar Research In Motion RIM.TO RIMM.O
from the U.S. sale of its products, accusing the BlackBerry
maker of infringing on five Motorola technology patents.
 Motorola, which has been losing market share to Canada's
RIM for years, said most of RIM's products infringe on at least
one of the patents, which cover technology for Wi-Fi,
application management, user interface and power management. A
representative for RIM declined comment.
 The complaint stems from the rivals' failure to reach an
agreement to renew a technology cross-licensing pact that
allowed them to use each others' technology, according to
Motorola. The previous pact expired in December 2007.
 The companies have been in litigation in a Texas court
since February 2008 due to their failure to reach a deal.
 Asked about the timing for the complaint with the U.S.
International Trade Commission, Jonathan Meyer, Motorola's
senior vice president of intellectual property law, said the
company had been considering the move for some time.
 "The parties are very far apart in discussions of a
resolution," Meyer said.
 It is a common practice for technology companies to engage
in prolonged legal battles in the hope of gaining the upper
hand in negotiations for licensing agreements.
 Motorola said it asked the ITC to start an investigation
into RIM's use of Motorola patents, to prohibit the Canadian
company from importing the infringing products and to stop it
from selling infringing products that were already imported.
 Meyer said the ITC typically considers complaints for a
month before deciding whether to launch an investigation, which
could take 12 to 14 months to complete.
 Motorola shares closed down 16 cents or 2 percent at $7.21
on the Nasdaq. RIM's U.S. shares closed down 3 percent or $1.91
at $61.68.
 (Reporting by Sinead Carew; Editing by Tim Dobbyn and Matthew
Lewis)

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