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BlackBerry

Discontinued line of mobile devices and services

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Photo of BlackBerry Bold9700 smartphone
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Through Email, World Wide Web and Smartphone

In its early years, the BlackBerry proved to be a major advantage over the (typically) one-way communication of conventional pagers and it also removed the need for users to tether to personal computers. It became especially used in the corporate world in the US and Canada. RIM debuted the BlackBerry in Europe in September 2001, but it initially had less appeal there where text messaging using SMS was more established. With the advancement of cellular technology, RIM released in 2002 the first BlackBerry cell phone, the BlackBerry 5810, that ran on the GSM network and used GPRS for its email and web capabilities. RIM also gained a reputation for secure communications, which led to the US government becoming its biggest customer and making use of BlackBerry services.

Following the release of the BlackBerry Pearl in September 2006, as well as BlackBerry Messenger software, BlackBerry began attracting many mainstream consumers outside its traditional enterprise userbase, and was influential in the development and advancement of smartphones in this era. The BlackBerry line was for some time also the leading smartphone platform in the US. At its peak in September 2011, there were 85 million BlackBerry services subscribers worldwide. In the following years it lost market mainly to the Android and iOS platforms; its numbers had fallen to 23 million in March 2016, a decline of almost three-quarters. In 2013, RIM replaced the existing proprietary operating system, BlackBerry OS, with a new revamped platform called BlackBerry 10, while in 2015, the company began releasing Android-based BlackBerry-branded smartphones, beginning with the BlackBerry Priv.

On September 28, 2016, BlackBerry Limited (formerly Research In Motion) announced it would cease designing its own BlackBerry devices in favor of licensing to partners to design, manufacture, and market. The original licensees were BB Merah Putih for the Indonesian market, Optiemus Infracom for the South Asian market, and BlackBerry Mobile (a trade name of TCL Technology) for all other markets. New BlackBerry-branded products did not manage to gain significant market impact and were last produced in 2020. A new American licensee planned to release a new BlackBerry before it shut down in 2022 without a product. On January 4, 2022, BlackBerry Limited discontinued its legacy BlackBerry software platform services (email, BlackBerry Messenger, BlackBerry World, BlackBerry Protect, and Voice Search); BlackBerry devices based on the Android platform were not affected. Following the discontinuation of BlackBerry smartphones and their related services, BlackBerry Limited transitioned to providing software and services and holds critical software application patents.

History

Research in Motion (RIM), founded in Waterloo, Ontario, first developed the Inter@ctive Pager 900, announced on September 18, 1996. The Inter@ctive Pager 900 was a clamshell-type device that allowed two-way paging. After the success of the 900, the Inter@ctive Pager 800 was created for IBM, which bought US$10 million worth of them on February 4, 1998. The next device to be released was the Inter@ctive Pager 950, on August 26, 1998. The first device to carry the BlackBerry name was the BlackBerry 850, an email pager, released January 19, 1999. Although identical in appearance to the 950, the 850 was the first device to integrate email and the name Inter@ctive Pager was no longer used to brand the device.

The first BlackBerry device, the 850, was introduced in 1999 as a two-way pager in Munich, Germany. BlackBerry was a solution devised by RIM for delivering e-mail over several different wireless networks. The name BlackBerry was coined by the marketing company Lexicon Branding. The name was chosen out of about 40 potential names, because of the resemblance of the keyboard's buttons to that of the drupelets that compose the blackberry fruit.

The original BlackBerry devices, the RIM 850 and 857, used the DataTAC network. In 2002, the more commonly known convergent BlackBerry 5810 smartphone was released, which supports push email, mobile telephone, text messaging, Internet faxing, Web browsing and other wireless information services.

BlackBerry gained market share in the mobile industry by concentrating on email. BlackBerry began to offer email service on non-BlackBerry devices, such as the Palm Treo, through the proprietary BlackBerry Connect software.

The original BlackBerry device had a monochrome display while newer models installed color displays. All newer models were optimized for "thumbing", the use of only the thumbs to type on a keyboard. The Storm and Storm 2 include a SureType keypad for typing. Originally, system navigation was achieved with the use of a scroll wheel mounted on the right side of device models prior to the 8700. The trackwheel was replaced by the trackball with the introduction of the Pearl series, which allowed four-way scrolling. The trackball was replaced by the optical trackpad with the introduction of the 8500 series, the company's first entry-level device. Models made to use iDEN networks, such as Nextel, SouthernLINC, NII Holdings, and Mike also incorporate a push-to-talk (PTT) feature, similar to a two-way radio.

On January 30, 2013, BlackBerry announced the release of the Z10 and Q10 smartphones. Both models consisted of touch screens: the Z10 features an all-touch design and the Q10 combines a QWERTY keyboard with touchscreen features.

On March 5, 2013, BlackBerry announced the signature of a large contract to secure German government Data and Voice communications. Angela Merkel signed the contract publicly and appeared at Cebit along with BlackBerry Europe Managing Director, Herve Liboureau.

During the second financial quarter of 2013, BlackBerry sold 6.8 million handsets, but was eclipsed by the sales of competitor Nokia's Lumia model for the first time.

On August 12, 2013, BlackBerry announced the intention to sell the company due to their increasingly unfavorable financial position and competition in the mobile industry. Largely due to lower than expected sales on the Z10, BlackBerry announced on September 20, 2013, that 4,500 full- and part-time positions (an estimated 40% of its operating staff) had been terminated and its product line had been reduced from six to four models. On September 23, 2013, Fairfax Financial, which owned a 10% equity stake in BlackBerry, made an offer to acquire BlackBerry for $4.7 billion (at $9.00 per share). Following the announcement, BlackBerry announced an acceptance of the offer provisionally but it would continue to seek other offers until November 4, 2013.

On November 4, 2013, BlackBerry replaced Thorsten Heins with new interim CEO John S. Chen, the former CEO of Sybase. On November 8, the BlackBerry board rejected proposals from several technology companies for various BlackBerry assets on grounds that a break-up did not serve the interest of all stakeholders, which include employees, customers and suppliers in addition to shareholders, said the sources, who did not want to be identified as the discussions were confidential. On November 13, 2013, Chen released an open message: "We are committed to reclaiming our success."

On December 17, 2013, BlackBerry announced a contract for more than 10,000 BlackBerry Z10 for Peugeot SA.

On February 26, 2014, during Mobile World Congress, Airbus signed a contract with BlackBerry Europe Managing Director, Herve Liboureau, for the BlackBerry 10 entire Mobility Management suite.

In early July 2014, the TechCrunch online publication published an article titled "BlackBerry Is One Of The Hottest Stocks Of 2014, Seriously", following a 50 percent rise in the company's stock, an increase that was greater than peer companies such as Apple and Google; however, an analysis of BlackBerry's financial results showed that neither revenue or profit margin were improved, but, instead, costs were markedly reduced. During the same period, BlackBerry also introduced the new Passport handset—consisting of a 4.5-inch (11 cm) square screen with "Full HD-class" (1,440 x 1,440) resolution and marketed to professional fields such as healthcare and architecture—promoted its Messenger app and released minor updates for the BB10 mobile operating system.

On December 17, 2014, the BlackBerry Classic was introduced; it was meant to be more in line with the former Bold series, incorporating navigation buttons similar to the previous BlackBerry OS devices. When it was discontinued in June 2016, it was the last BlackBerry with a keyboard that dominates the front of the phone in the classic style.

In September 2015, BlackBerry officially unveiled the BlackBerry Priv, a slider phablet with a German-made camera lens with 18 megapixels that utilizes the Android operating system with additional security and productivity-oriented features inspired by the BlackBerry operating systems. However, BlackBerry COO Marty Beard told Bloomberg that "The company's never said that we would not build another BB10 device."

On July 26, 2016, the company hinted that another model with a physical keyboard was "coming shortly". The same day, BlackBerry unveiled a mid-range Android model with only an on-screen keyboard, the BlackBerry DTEK50, powered by the then latest version of Android Marshmallow (version 6.0). (The Priv could be upgraded to the same version of the Android operating system as well.) This device featured a 5.2-inch full HD display. BlackBerry chief security officer David Kleidermacher stressed data security during the launch, indicating that this model included built-in malware protection and encryption of all user information. Industry observers pointed out that the DTEK50 is a re-branded version of the Alcatel Idol 4 with additional security-oriented software customizations, manufactured and designed by TCL.

In September 2016, BlackBerry Limited agreed to a licensing partnership with an Indonesian company to set up a new joint venture company called BB Merah Putih to "source, distribute, and market BlackBerry handsets in Indonesia".

On October 25, 2016, BlackBerry released the BlackBerry DTEK60, the second device in the DTEK series, manufactured and designed by TCL. The device featured a 5.5-inch Quad-HD touch screen display running on Qualcomm's Snapdragon 820 processor with support for Quick Charge 3.0, USB Type-C, and a fingerprint sensor.

In October 2016, it was announced that BlackBerry would work with the Ford Motor Company of Canada to develop software for the car manufacturer's connected vehicles.

In February 2017, a $20m class action lawsuit against BlackBerry was announced by the former employees of the company.

In March 2017, BB Merah Putih announced the BlackBerry Aurora, an Indonesian-made and sold device, running an operating system based on Android 7.0 out of the box.

In March 2018, BlackBerry announced that it would be working with Jaguar Land Rover to develop software for the car manufacturer's vehicles. In June 2018, BlackBerry, in partnership with TCL Mobile and Optiemus Infracom, launched the KEY2 at a global launch in New York. This was the third device to sport a keyboard while running Google's Android OS.

In 2017, BlackBerry Mobile released the BlackBerry KeyOne, which was known for having a physical keyboard below its 4.5 inch touchscreen and a long battery life. It was the last device to be designed internally by BlackBerry. Also in 2017, BlackBerry Mobile, under their partner license agreements, released the BlackBerry Aurora, BlackBerry KeyOne L/E BLACK, and the BlackBerry Motion.

In June 2018, the BlackBerry Key2 was launched in international markets, and in India by licensee Optiemus Infracom. The Key2 sports a dual camera setup and incorporates features such as portrait mode and optical zoom. In August 2018, after the launch of the BlackBerry Key2, Optiemus Infracom announced the launch of the BlackBerry Evolve and Evolve X smartphones for the Indian market sold exclusively on Amazon India. The smartphones were conceptualized, designed and manufactured in India.

As of 2019, BB Merah Putih's website had been repurposed, with BlackBerry Limited stating that only technical support will be offered for the Indonesian devices built by the company. Additionally, the operational status of Optiemus is unknown as of September 2020, as there have not been any updates posted regarding BlackBerry products in India since 2018.

In October 2023, it was announced that Blackberry Chief Operating Officer, John Chen would be leaving the company after ten years. Richard Lynch took over as interim CEO and chair of the board.

2016–2022: Hardware licensing and BlackBerry Mobile

In 2016, parent company BlackBerry Limited decided to cease direct competition in the smartphone market and instead focus on producing security software. As a result, on September 28, 2016, the company announced it would stop designing its own devices in favor of licensing partners to design, manufacture, and market them.

Between December 2016 and August 2020, TCL Communication used the trading name "BlackBerry Mobile" to manufacture and sell BlackBerry-branded devices worldwide. This agreement excluded specific markets that were operated by other licensees: BB Merah Putih in Indonesia and Optiemus Infracom in India, Bangladesh, Sri Lanka, and Nepal. TCL was charged with manufacturing, distributing, and designing BlackBerry-branded devices for the global market.

The first device released under the BlackBerry Mobile brand was the BlackBerry KeyOne, which was also the last smartphone where the hardware was designed internally by BlackBerry Limited. TCL went on to design, manufacture, and distribute the BlackBerry Motion, BlackBerry Key2, and BlackBerry Key2 LE. All devices manufactured under this partnership continued to ship running Android, along with a security software suite provided by BlackBerry Limited. This suite included tools such as DTEK, BlackBerry Messenger, BlackBerry Hub, and a "secure boot" at start-up to ensure that the operating system had not been tampered with.

Production under the BlackBerry Mobile brand concluded when TCL announced it would stop manufacturing the devices on August 31, 2020, coinciding with the end of their access to the BlackBerry license. In August 2020, BlackBerry signed a new smartphone licensing agreement with the US-based startup company OnwardMobility. However, the company shut down in 2022 without ever releasing a device. The licenses to manufacture and sell BlackBerry devices in South Asia and Indonesia also lapsed, effectively marking the end of hardware production under the BlackBerry brand.

Intellectual property litigation

NTP Inc case

In 2000 NTP sent notice of its wireless email patents to a number of companies and offered to license the patents to them. NTP brought a patent-infringement lawsuit against one of the companies, Research In Motion, in the United States District Court for the Eastern District of Virginia. This court is well known for its strict adherence to timetables and deadlines, sometimes referred to as the "rocket docket", and is particularly efficient at trying patent cases.

The jury eventually found that the NTP patents were valid; furthermore, the jury established that RIM had infringed the patents in a "willful" manner, and the infringement had cost NTP US$33 million in damages (the greater of a reasonable royalty or lost profits). The judge, James R. Spencer, increased the damages to US$53 million as a punitive measure due to the willful nature of the infringement. He also instructed RIM to pay NTP's legal fees of US$4.5 million and issued an injunction ordering RIM to cease and desist infringing the patents—this decision would have resulted in the closure of BlackBerry's systems in the US. RIM appealed all of the findings of the court. The injunction and other remedies were stayed pending the outcome of the appeals.

In March 2005 during appeal, RIM and NTP tried to negotiate a settlement of their dispute; the settlement was to be for $450 million. Negotiations broke down due to other issues. On June 10, 2005, the matter returned to the courts. In early November 2005 the US Department of Justice filed a brief requesting that RIM's service be allowed to continue because of the large number of BlackBerry users in the US Federal Government.

In January 2006 the US Supreme Court refused to hear RIM's appeal of the holding of liability for patent infringement, and the matter was returned to a lower court. The prior granted injunction preventing all RIM sales in the US and use of the BlackBerry device might have been enforced by the presiding district court judge had the two parties been unable to reach a settlement.

On February 9, 2006, the US Department of Defense (DOD) filed a brief stating that an injunction shutting down the BlackBerry service while excluding government users was unworkable. The DOD also stated that the BlackBerry was crucial for national security given the large number of government users.

On February 9, 2006, RIM announced that it had developed software workarounds that would not infringe the NTP patents, and would implement those if the injunction was enforced.

On March 3, 2006, after a stern warning from Judge Spencer, RIM and NTP announced that they had settled their dispute. Under the terms of the settlement, RIM has agreed to pay NTP $612.5 million (USD) in a "full and final settlement of all claims." In a statement, RIM said that "all terms of the agreement have been finalized and the litigation against RIM has been dismissed by a court order this afternoon. The agreement eliminates the need for any further court proceedings or decisions relating to damages or injunctive relief." The settlement amount is believed low by some analysts, because of the absence of any future royalties on the technology in question.

On May 26, 2017, BlackBerry announced that it had reached an agreement with Qualcomm Incorporated resolving all amounts payable in connection with the interim arbitration decision announced on April 12, 2017. Following a joint stipulation by the parties, the arbitration panel has issued a final award providing for the payment by Qualcomm to BlackBerry of a total amount of U.S.$940,000,000 including interest and attorneys' fees, net of certain royalties due from BlackBerry for calendar 2016 and the first quarter of calendar 2017.

KIK

On November 24, 2010, BlackBerry removed Kik Messenger from BlackBerry App World and limited the functionality of the software for its users. RIM also sued Kik Interactive for patent infringement and misuse of trademarks. In October 2013, the companies settled the lawsuit, with the terms undisclosed.

Facebook and Instagram

In 2018 it was reported that BlackBerry would be filing legal action against Facebook over perceived intellectual property infringements within both Facebook Messenger and WhatsApp as well as with Instagram. They settled for an undisclosed amount on January 15, 2021.

Service outages

At various stages of the company's history it suffered occasional service outages that have been referred to in the media as "embarrassing".

In 2005 the company suffered a relatively short-term outage reportedly among a small handful of North America carriers. The service was restored after several hours.

In 2007 the e-mail service suffered an outage which led for calls by some questioning the integrity towards BlackBerry's perceived centralized system.

In 2009 the company had an outage reportedly covering the whole of North America.

At 2011-10-10 10:00 UTC began a multi-day outage in Europe, the Middle East and Africa, affecting millions of BlackBerry users. There was another outage the following day. By October 12, 2011, the BlackBerry Internet Service went down in North America. Research In Motion attributed data overload due to switch failures in their two data centres in Waterloo in Canada and Slough in England as the cause of the service disruptions. The outage intensified calls by shareholders for a shake-up in the company's leadership. Some estimates by BlackBerry are that the company lost between $50 million to $54 million due to global email service failure and outage in 2011.

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