BlackBerry Takes Legal Action Against Blu Products

As per media reports, BlackBerry Limited (NASDAQ:BBRY) recently filed charges against Blu Products – a FL-based phone manufacturing company. Blu Products sells affordable, unlocked phones. According to BlackBerry, Blu Products has been selling phones which are incorporated with BlackBerry’s SEP technology without a license.

Blu Products has been accused of infringing 15 BlackBerry patents. Despite being approached by BlackBerry to solve the issue in a non-discriminatory way and have its patents legally licensed, Blu Products has apparently disregarded the offer.

BlackBerry also filed another lawsuit earlier in August this year against CA-based Avaya for violation of eight patents. This was the first patent infringement lawsuit to be filed by the company, as per reports.

Changes at BlackBerry

The lawsuits have started emerging at a time when BlackBerry has been witnessing a rapid shift in business structure. The company has now shifted its focus from mobile handsets to software and services and licensing. The company has been struggling for a while due to intense competition from the likes of Apple Inc. (NASDAQ:AAPL) , Nokia (HE:NOKIA) Corporation (NYSE:NOK) and Samsung Electronics (KS:005930) Co. Ltd. A range of its handset models released in the past two years failed to generate the desired revenues. As a result, the company has been trying to boost top- and bottom-line growth and generate value for shareholders through rapid growth in the security and services space. BlackBerry has made noteworthy acquisitions in the past to promote its changed business focus such as AtHoc Inc., Encription Ltd., Good Technology Securesmart GmBH, to name a few.

Zacks Rank and Stock to Consider

BlackBerry currently holds a Zacks Rank #2 (Buy). Another favorably ranked stock in the wireless communications space is KT Corp. (NYSE:KT) with a Zacks Rank #1 (Strong Buy).