Shares of BlackBerry (NYSE:BB) stock have been soaring the past week of trading, and Monday kicks off another day of major gains.
BB stock has received this massive boost after BlackBerry reportedly settled a dispute with Facebook (NASDAQ:FB) on Jan. 15 regarding patent royalties. That said, let’s take a closer look at what this news means and why BB stock is skyrocketing.
- As I previously said, the Facebook-BlackBerry dispute involved terms that were not disclosed regarding patent royalties.
- “We have resolved our disputes pursuant to a confidential agreement and have no further comment,” a spokesperson from BlackBerry said.
- A Facebook spokesperson said the firm did not have a comment.
- The issues between these two companies actually dates back to 2018.
- At this point, BlackBerry sued Facebook for “using BlackBerry inventions in its popular messaging applications.”
- In response, Facebook launched its own challenges to BlackBerry and even initiated a lawsuit of their own — “accusing BlackBerry of infringing patents for voice messaging technology.”
- Overall, BlackBerry has been trying to generate some revenue through these patent royalties.
- For example, the company sold 90 patents to China-based Huawei earlier this month, including their smartphone IP.
- BlackBerry switched its business focus around 2016 when its mobile devices became less popular among consumers.
- Now, the Canadian tech firm now develops products and services in cybersecurity, the Internet of Things (IoT) and artificial intelligence (AI).
- BB stock shares have doubled in value the past 10 days.
Shares of BB stock were up 41% as of Monday morning.
On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Nick is a web editor at InvestorPlace.