Is Blackberry maker Research In Motion (Nasdaq: RIMM) just forgetful -- or a habit-bound bad boy?
Audio technologist Dolby Laboratories (NYSE: DLB) would argue the latter. Dolby just filed patent infringement suits against RIM in German and American courts, claiming that its smartphones and tablets are playing digital media files without proper Dolby licenses.
"Litigation was regrettably our last resort after RIM declined to pay for the use of Dolby's technology," Dolby said in a press release. "All other major smart phone makers have agreed to license the Dolby technologies which are the subject of this litigation."
So if Dolby's license terms are good enough for Apple (Nasdaq: AAPL), Nokia (NYSE: NOK), and the universe of Android makers, why is RIM raising its hackles? Perhaps the company thinks it can get by without those licensing fees. After all, RIM's already embroiled in a similar lawsuit regarding digital image previews patented by Eastman Kodak (NYSE: EK). I'm not saying there's a pattern here, but, well, there seems to be a pattern here.
Dolby's and Kodak's cases also look stronger in the light of the settlement between Apple and Nokia earlier this week, in which patent owner Nokia won out.
Any Dolby investor will tell you that the company really needs to enforce its patent rights and extract those royalties if it wants to stay in business. Selling those licenses for technologies developed in-house is what the company does. To learn more about Dolby's innovation-centric business model -- and a hidden threat to your personal wealth -- you should click here to watch a video explaining it all. Watch it now, then add Dolby to your Foolish watchlist so you can stay on top of this developing story with digital hi-fi clarity.
Fool contributor Anders Bylund holds no position in any of the companies discussed here. The Motley Fool owns shares of Apple. Motley Fool newsletter services have recommended buying shares of Apple and Dolby Laboratories, and creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. You can check out Anders' holdings and a concise bio if you like, and The Motley Fool is investors writing for investors.
