Blackberry is selling off its legacy patents, primarily covering mobile devices, messaging, and wireless connectivity, to the tune of $600 million.
Blackberry was once one of the most popular smartphone manufacturers, selling devices with their distinctive physical keyboard. The devices were popular with professionals and consumers alike, since the keyboard made it extremely easy to text, email, browse the web, and more. Like many brands, however, the iPhone spelled doom for Blackberry’s handset business and the company has since pivoted to software.
The company is now selling its legacy patents, patents that seem to largely cover its old handset business. The patents are being sold to Catapult IP Innovations Inc., a special purpose vehicle formed specifically to purchase Blackberry’s IP.
Blackberry will receive $450 million in cash, supplied by funding Catapult IP secured, as well as a promissory note of $150 million for the balance. Blackberry will also retain a license to the patents it is selling.
It remains to be seen what Catapult IP plans to do with the patents.