After canceling its arrangement with Catapult IP Innovations Inc., BlackBerry Ltd. (BB.TO) said on Tuesday that it would sell mobile device patents for up to $900 million.
Malikie Innovations Ltd. will acquire the patents for $170 million now and $30 million three years later. BlackBerry will receive annual cash royalties on patent income, including messaging and cellular networking.
Key Patent Innovations Ltd. created Malikie to monetize intellectual property.
Last year, Blackberry stated it was considering alternative patent sales options since the Catapult IP Innovations Inc. contract was taking longer than expected to finish, losing exclusivity.
The Canadian business said Catapult could not find finance to execute the previously announced purchase on adjusted conditions acceptable to BlackBerry.
BlackBerry’s main industries are cybersecurity and automobile software.
After losing market share to Apple’s iPhones and Android devices, the business discontinued smartphone service last year.
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