After losing a legal battle to a New Mexico based company, BASIS International, RIM has changed the name of its new operating system from BBX to Blackberry 10. The New Mexico based company claimed ownership of the name, and a legal suit ensued when RIM tried to use the BBX name.
In October, at the DevCon conference in San Francisco, RIM (NASDAQ:RIMM) unveiled their new operating system called BBX. The new operating system combined the Blackberry 7 OS and the QNX OS from playbook and stated that it would be the OS of choice on smartphones, embedded systems and mobile phones.
It didn’t take long for BASIS to send a cease-and-desist letter to RIM, stating that it had thousands of product licenses all over the world with the BBX prefix that run on Windows, Linux and MAC OS and other proprietary Os as well with IBM and Hewlett Packard. They also requested a temporary restraining order that requested that RIM be banned from using the BBX trademark at their Asia DevCon conference. The Blackberry 10 name change came on the heels of the court granting the ban.
This new operating system is of extreme importance to RIM’s success, as its creation is a direct response to its growing list of competitors such as the IPhone and Android that have been luring away the Blackberry customers with their new products.
One of the key factors in the judge’s decision was that BASIS has been using the registered and trademarked BBX prefix for 26 years now, clearly giving them the right to it. Despite the cease and desist order, RIM continued to turn a blind eye, almost acting like they could ignore it and the problem would go away, but it clearly did not and they reversed direction quickly when they lost the legal battle with BASIS, although one would wonder why they would proceed, knowing the other company was valid in its claims.
This development is not the first bump in RIM’s road lately. Over the past two weeks alone, the company has seen troubles that include the head of operations in Indonesia possibly facing charges for several consumers’ injuries due to a stampede at a promotional sale, and they fired two of their Canadian executives for causing an Air Canada flight to be diverted due to their drunken rowdiness.
The company is definitely not having an easy go of it and analysts are saying that the future of the company is heavily contingent on the success of this future launch of the new OS. The stock prices of the company’s shares have reflected the troubles the Blackberry creator has been having of late, showing a drop of 70% since the first of the year. By the time the new line is released in 2012, RIM could be in an even more challenging position.