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First Crashing Stock Prices Now Lawsuit, Research In Motion In Trouble

BlackBerry maker Research In Motion has found itself in the midst of a fresh controversy after San Francisco based Dolby Laboratories filed a lawsuit alleging that RIM illegally used some of its technologies in the PlayBook and BlackBerry devices.

The lawsuit, which was filed separately in the US and Germany, demands for financial compensation for past usage of the products, as well as appeals to the courts for blocking the sales of these allegedly unlicensed devices.

"Litigation was regrettably our last resort after RIM declined to pay for the use of Dolby's technology," San Francisco-based Dolby's general counsel, Andy Sherman, said in a statement on Wednesday, Reuters reports (opens in new tab).

Despite being repeatedly asked for comments, an RIM spokesperson chose to stay tight lipped citing company policies.

Dolby, on other hand repeatedly claimed that its patent technologies, which facilitate a very handy audio compression standard, were used by RIM on its BlackBerry and PlayBooks without any prior permission from the company.

The company also did not forget to brag how the technology has recently found its usage in many widely used Smartphone, tablet, and music players for its sheer ability to generate a high end output using only limited storage and transmission space.

Ravi Mandalla was ITProPortal's Sub Editor (and a contributing writer) for two years from 2011. Based in Ahmedabad, India, Ravi is now the owner and founder of Parity Media Pvt. Ltd., a news and media company, which specializes in online publishing, technology news and analysis, reviews, web site traffic growth, web site UI. Ravi lists his specialist subjects as: Enterprise, IT, Technology, Gadgets, Business, High Net Worth Individuals, Online Publishing, Advertising, Marketing, Social Media, News, Reviews, Audio, Video, and Multi-Media. He has also previously worked as Dy. Manager - IT Security at (n)Code Solutions.