BULKY DOCUMENTS
`(Exceeds 100 pages)
`
`Proceeding/Serial No: 91 I 91 572
`
`Filed: 7[29[2010
`
`Title: 0PPOSER’S NOTICE OF RELIANCE #3:
`
`PRINTED PUBLICATIONS
`
`

`
`
`
`NR
`
`NOVAK DRUCE —. QUIGG LLP
`/
`'or.~\ vs
`;
`1./ti.“
`
`July 26, 2010
`
`First Class Mail
`
`United States Patent and Trademark Office
`
`Trademark Trial and Appeal Board
`P.0. Box 1451
`
`Alexandria, Virginia 22313-1451
`
`Re:
`
`Opposition No. 91191572
`Appl. Ser. No. 77/580,530
`Opposed Mark: FASHIONBERRY
`Our Matter No.: 8173.141
`
`Dear Commissioner:
`
`Enclosed for filing in connection with the above—referenced opposition is Opposer’s Notice of
`Reliance # 3. together with the supporting exhibits, filed under certificate of mailing dated July
`26. 2010.
`
`In accordance with 37 CFR § 2.197. the undersigned hereby certifies that this letter along with
`the documents described in the foregoing paragraph, was deposited with the United States Postal
`Service with sufficient postage as first class mail in an envelope addressed to: United States
`Patent and Trademark Office, Trademark Trial and Appeal Board, P.O. Box 1451, Alexandria,
`Virginia 22313-1451. on this 26th day ofJuly, 2010.
`
`Thank you for your attention to this matter.
`
`Respectfully yours,
`NOVAK DRUCE + QUIGG LLP
`2'2
`
`K #
`
`__...-»'*"“‘
`
`Je rey J. Morgan
`
`l
`
`lilllllllllllllllllllllllllllllllllllllllllllllll
`
`07-29-2010
`
`5:. 3:: I:
`
`:3:
`
`Wells Fargo Plaza - 1000 Louisiana Street ~ Fifty-Third Floor Houston, Texas 77002
`": 7l3.57l 3AOO~
`' 713.456.2836
`
`www.novol<druce.com
`
`

`
`CERTIFCIATE OF MAILING
`
`I hereby certify that this correspondence is being deposited with the
`United States Postal Service with sufficient postage as first—class
`mail in an envelope addressed to: Trademark Trial and Appeal
`Board, United States Patent and Trad
`ark Office, P.O.Bo.\ 1451,
`Alexandria, VA 22313-1451, on July __, 2010.
`By:
`I
`C
`
`Jeffrey J. Morgan
`
`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
`
`RESEARCH IN MOTION
`LIMITED
`
`Opposer,
`
`<
`
`FASHIONBERRY, INC.
`
`Applicant.
`
`\/\)\)§/\)\)\)§/\)€&/3
`
`Serial No.:
`
`77/580,530
`
`Mark:
`
`FASHIONBERRY
`
`Opposition No. 91 191572
`
`OPPOSER’S NOTICE OF RELIANCE # 3:
`
`PRINTED PUBLICATIONS
`
`Opposer Research In Motion Limited (“RIM” or “Opposer”), pursuant to 37 C.F.R. §
`
`2.120(e), hereby gives notice that it will rely on Research In Motion Limited’s 2010 Annual
`
`Report, attached hereto as Exhibit 9. The Annual Report is available to the general public on the
`
`Internet at the URL shown in Exhibit 9. The Annual Repoit shows financial data related to the
`
`sale of goods and services under the BLACKBERRY trademark and is relevant to show the
`
`fame, notoriety, reputation, prestige and scope of use of the mark.
`
`Opposer hereby gives notice that it also will rely on print outs of pages from Research In
`
`Motion Limited’s web site, attached hereto as Exhibit 10. The pages are available to the general
`
`public on the Internet at the URL shown in Exhibit 10. The pages are related to the sale of goods
`
`

`
`and services under the BLACKBERRY trademark and are relevant to show the use of the mark
`
`in connection with fashion related applications and publications.
`" ‘x (,
`
`Dated: July 20 . 2010
`
`/..-,,,,,
`
`-..
`
`.,
`
`_
`
`Willigrrh R. Towns
`Jeffrey J. Morgan
`Novak Druce + Quigg LLP
`1000 Louisiana Street, 53rd Floor
`
`Houston, Texas 77002
`
`Attorneys for Opposer
`Research In Motion Limited
`
`Ix.)
`
`

`
`CERTIFICATE OF SERVICE
`
`I hereby certify that a copy of the foregoing OPPOSER’S NOTICE OF RELIANCE
`#3 was sent by U.S. First Class Mail, postage prepaid, to the following on this 2% day of
`July. 2010:
`
`Fashionberry, Inc.
`3838 Raymert Drive, Suite 3
`Las Vegas, Nevaqa 89121
`/
`If
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`V
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`ml ins 2:9
`
`LLP
`Of Novak Druce + Q "
`1000 Louisiana Street, 53rd Floor
`
`Houston, Texas 77002
`
`

`
`EXHIBIT 9
`
`Submitted with Opposer’s Notice of Reliance # 3
`
`Research In Motion Limited V. Fashionberry, Inc.
`Opposition No. 91191572
`
`

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`'=- BlackBerr}4
`
`

`
`II\
`
`a unique mobile experience for our customers. During the past gear
`we launched several new BlackBerrg smartphones with enhanced
`functianalitg, features. performance and designs, including the
`BlackBerrg" Tour" 9630. BlackBerrg" Curve" 8520/ 8530. BlackBerrg’
`Storm2'“ 9520/9550 and BlackBerrg Bold 9700.
`Earlg in fiscal 2010. RIM launched BlackBerrg App World ” and we
`are pleased to report that the developer cammunitg is thriving. Rilv
`continues to provide developers with robust tools, technologies and
`business sen/ices to assist them in creating and marketing even more
`powerful and useful applications. Related initiatives 1'1 POIO included
`the second annual ElackBerrg Developer Conference. the introduct on
`of the BlackBerrg Academic Program and a varietg at new
`development tools, such as BlackBerrg‘ Theme Studio, BlackBerrg
`Widgets. and new pagment and advertising tools and services to
`help developers monetize their applications. RIM also previewed
`a new WebKlt—based browserthat is expected to launch in
`fiscal 20iI.
`
`The BlackBerrg platform remains the
`corporate standard for enterprise mobilitg. In
`recognition of its leadership in the enterp.ri:;e
`market in fiscal20iO. BlackBerrg"‘ EF1tEi’pi'lS3
`Server version 50 received the Global
`
`Mobile Award forthe "Best Mobile Enterprise
`Product or Service" at GSMA s Mobile Wort;
`Congress and was also the first mobile
`platform to receive the Common Criteria
`EAL4+ Securitg Certification We are
`committed to maintaining our leadership
`in this market and continue to strengther
`the BlackBerrg platform through enhanced
`integration of value added services such as Blacl<Berrt.,' Mobile Voice
`Sgstem (mobilizes PBX sgstems and brings office phore features to
`3lackBerrg smartphones). Chalk Pushcast Software (for corporate
`podcasting) and enterprise social networking and collaboration
`tools We also recentlg launched BlackBerrg" Enterprise Server
`txpress to further extend our market opportunitg bg providing
`companies of all sizes with a cost—effective solution that supports
`mobile connectivitg for empiogees without compromising security or
`manageabilitg
`RIM is a pioneer in the wireless data industrg and the
`BlackBerrg solution was purposefullg designed to deliver a true
`'aush"based user experience while also offering advanhed securitg.
`manageabilitg. spectral efficiencg and power management
`RlM's BlackBerrg' infrastructure is a keg component in 1'18 unique
`BlackBerrg value proposition and continues to be an important
`source of our competitive advantage. R|M’s proactive and ongoing
`investment in infrastructure has enabled us to continue ‘a provide the
`
`Message from the Co-CEOs
`Fiscal 2010 was another successful gear for Research In Motion
`with strong financial results and record shipments of 37 million
`BlackBerri; smartphanes. RIM was able to successfullg expand
`its global market share while continuing to achieve strong sales in
`North America. This exceptional performance was fueled bg a broad
`portfolio of compelling products and services and solid business
`execution pg RlM‘s emplogees and partners
`Against the backdrop of a challenging global economg, RIM
`grew revenue 33% to $iS billion and GAAP net income 30% to $2.5
`billion in fiscal 20lO At the end ofthe gear, the BlockBerrg subscriber
`account base was over 4i million with approxlmatelg 17 million net
`new subscriber accounts added and over a third of our customers
`residing outside North America There
`are now aporoximatelg 550 carriers
`and distribution partners offering
`BlockBerrg products and services in
`I75 countries around the world. RIM
`continues to expand the reach ofthe
`EllackBerrg platform in new market
`segments while maintaining its
`leadership position in the enterprise
`market.
`In fiscal L/0iO. over 35% of total
`revenues came from outside
`North America RIM 5 international
`
`
`
`-’:'-'Blackfleffi’
`
`presence grew signiticantlg during
`the gear. wit 1 robust growth in Latin
`America. Asia Pacific. the Middle East
`and Western Europe Smartphones such
`as the Black Zierrg" Curve” 8520 and the BlackBerrg" Bold" 9700. as
`well as popular applications that leverage the BlackBerrg platform
`such as pus t email and BlackBerrg"‘ Messenger (BBM'“), have been
`instru'nenta in driving RIM's international growth BBM use increased
`fivefold during fiscal 2010 and we believe this growth is a strong
`indicator of he potential for keg applications to drive even greater
`adoption and logoltg to the BlackBerrg platform i'l the coming gear
`The value of the BlockBerrg brand also increased substantiallg
`during fisca LZOIO Last gear we were pleased to have been included
`on the Millword Brown Top iOCi Most Powerful Brands list. This
`gear ourfocused DLSIHESS efforts, including integrated marketing
`programs and new advertising campaigns, helped move the
`Blacklserrg brand from Sist to loth on the list We continueta invest
`in the Blackiierrg brand in order to grow consumer interest and
`purchase intent both internationallg and in North America.
`Research and development efforts in fiscal 20iO remained
`focused on dei/eiopinc_i world class products and services that deliver
`
`
`
`

`
`
`
`
`
`industrg~leading fiinctionalitg. efficiencg, securitg, scalobilitg and
`qualitg of service necessarg to continue meeting the growing needs
`of our customers and partners
`RIM's global manufacturing and supplg chain teams have
`responded to the growing demand for BlackBerrg smartphones bg
`expanding their capabilities while continuing to focus on meeting
`customer expectations. In addition to strategic investments in our
`Waterloo tTiO'IUfCiCiUiIF1g facilitg. we have also grown manufacturing
`capacitg through the engagement of new outsourcing partners
`and the addition of production capabilities in keg locations around
`the world These new facilities complement our existing network
`of manufacturing partners and meet R|M‘s aualitg. cost,fIexibilitg
`and deliverg expectations. We continue to invest in the integration
`of our global supplg chain bg developing relationships with keg
`suppliers to support future product requirements and achieve greater
`forecast accuracg through improved demand management In
`support of this supplg chain integration and growth. RIM is investing
`in a leading edge IT sgstems infrastructure and global information
`management sgstem. driving a world class supplg chain engine to
`achieve the highest possible levels of customer satisfaction With
`continued global supplg chain investment and the addition of flexible
`production caoacitg, RIM is well positioned to meet the reauirements
`of our global carrier partners and will continue to focus on improving
`these capaoiliiies to meet and exceed our partner expectations for on
`time deliverg of high gualitg products for their customers.
`Providing exceptional support for the growing number of
`BlackBerrg subscribers is an important competitive advantage for
`RIM and its oartners. Our customer support efforts in fiscal 2010
`continued to focus on scalabilitg, ease~of use, efficiencg and cost:
`effectiveness. In addition. we continue to build and strengthen RIM's
`corporate structure, including our capabilities in finance, operations,
`administration and facilities to meet current and future growth RIM
`had approximatelg I4,000 emplogees at the end of fiscal 20lO. We
`continue to seek the best talent across all areas ofthe Company.
`including R8iD, carrier support, business development, marketing,
`customer care and manufacturing We also continue to recruit cc—op
`students and new graduates from top universities and colleges to
`ensure that we have the best new talent to enable us to continue to
`grow and innovate
`We are proud of RlM's accomplishments in fiscal 2010 and
`would like to thank our emplogees around the world whose
`abilities, hard work and determination enabled RIM to once again
`execute effectivelg and deliver solid results We would also like
`to communicate sincere appreciation to our Customers, partners,
`suppliers and shareholders fortheir support throughout the gear
`
`We believe that RIM is well positioned totake advantage of the
`exciting opportunities that lie ahead in fiscal POII. Some of our goals
`forthe coming gear include
`
`-
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`-
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`-
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`-
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`~
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`continue to enhance the user experience bg launching a new
`Webkit—based browser and new user interface for BlackBerrg
`smartphones. and bg growing the number of applications and
`services available for the BlackBerrg platform,
`
`launch several new BlackBerrg smartphones and other products
`and services to drive growth in both new and existing geographies
`and market segments;
`
`build on the strong international growth achieved over the past
`gear bg launching tiered pricing and targeted products and
`services within new market segments and geographies.
`
`continue to increase the value of the BlackBerrg brand through
`integrated marketing efforts.
`
`expand otir leadership in the business market bg leveraging
`value-added services. including Chalk Dushcosts and BlackBerrt
`Mobile Voice Sgstem, while also aggresslvelg targeting small on:
`medium sized business with BlockBerrg Enterprise Server Expres.
`
`aggressivelg growthe BlackBerrg subscriber account base anti
`deliver solid financial performance and prafitabilitii for our
`shareholders, and
`
`attract, hire and retair the best available talent to support RIM‘s
`customers and partners and to maintain RlM's I'TWC1l'~§€t
`leading
`position
`
`
`
`Mike Lazaridis
`FIESIOEIT cindCo—C&O
`
`Jim Bolslllie
`Co~CEO
`
`

`
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`Financial Highlights
`
`(in that/sa'ia:r of 5.5 daliar: except pgr sriare amounts}
`
`U S GAAP
`
`Statement of Operations data
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`Revenue
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`February 27,
`2010
`
`February 28.
`2009
`
`March 1,
`2008
`
`$ 14,953,224
`
`$ 6,584,266
`
`$ 11,065,186
`$ 5,097,298
`
`$ 6,009,395
`$ 3,080,581
`
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`Gross margin
`Research 82 aevelopment and selling,
`general cind administration .
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`Income before income taxes .
`Provision for income taxes . ............................................................ ..
`Net income
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`2,872,239
`310.357
`163,800
`28,640
`3,266,510
`809,366
`2,457,144
`
`55
`3
`
`4.35
`4.31
`
`44.0%
`6.5%
`12.8%
`
`2,180,399
`194,803
`—
`78,267
`2,800,363
`907,747
`1,892,616
`
`3.35
`3.30
`
`46.1%
`6.2%
`13.5%
`
`$
`
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`
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`
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`
`1,241,310
`108,112
`-
`79,361
`1,810,520
`516,653
`1,293,867
`
`2.31
`2.26
`
`513%
`60%
`14.7%
`
`Cash. cash equivalents. short~term
`investments and longeterm investments.
`Total assets
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`$ 2,343,996
`$ 2,238,847
`2,869,723
`$
`$
`5 511,187
`39
`8,101,372
`$10,204,409
`$
`3,933,366
`$ 5,874,128
`$ 7,602,663
`
`Annual Revenue
`{in billions of c‘ E aalla:
`
`Subscriber Accounts
`(in miliians}
`
`international Subscriber
`Accounts
`(in millions)
`
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`18
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`2010
`
`0 _-III
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`

`
`Fincmcio s
`
`MBSIOH «and x'xm;flL;S
`H1! 0 HC1\7\[‘flC1fl"f9DE‘? ‘H;
`'
`
`‘7
`II gear end Mcnth 1. 200
`TIC.“-' COm;:>c1red to f»
`*erc:tn:~.n,—: — Three months ended Februcng
`L7C1O compcued to three m«:.mhe
`
`OCH rnefrumem
`and Pu._»reciL:r
`
`‘egustexed Puonc Acco wring Farm
`‘ FinCmC1o\ Repcurtmg .
`.
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`zd Bc:b:m»:e Cheers
`_J Stcmtemems of E
`
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`totemems of Opercmoms ........ ..
`ed Statements of Cash Hows .
`.
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`
`

`
`
`
`
`
`
`
`RESEARCF li\
`
`‘/iCDTlOi» tliViiTED
`
`MD82A
`
`Managements Discussion and Analgsis
`of Financial Condition and Results of Operations
`for the Three Months and Fiscal Year ended Februarg 27, 20iO
`
`April 1, 2010
`The fol;owing Management's Discussion and Analgsis of Financial Condition and Results of Operations
`(“MD82A") should be read together with the audited consolidated financial statements and the acconnpanging
`notes (the “Consolidated Financial Statements”) of Research in Motion Limited (“R|M” or the ”Compahg",i for the
`fiscal gear ended February 27, 20iO. The Consolidated Financial Statements are presented in US dollars and
`have been prepared in accordance with United States generalli, accepted accounting principles (“U.S. UAAP”).
`All financid information in this MD82A is presented in US. dollars, unless otherwise indicated.
`
`RIM has prepared this MD&A with reference to National Instrument 57-702 “Continuous Disclosure Obligations”
`of the Canadian Securities Administrators. Under the U.S./Canaaa Multijurisdictional Disclosure Sgstem. the
`Compang is permitted to prepare this MD82A in accordance with the disclosure requirements of Canada, which
`requirements are different from those of the United States. This MD82A provides information for the fiscal gear
`ended Februarg 27, 2010 and up to and incluaing April l, 20iO.
`
`Additional information about the Compang, including the Compang's Annual information Form, whicr is
`included in RiM's Annual Report on Form 40—F, can be found on SEDAR at www.sedar.cam and on the US.
`Securities and Exchange Commissions (“SEC”) website at www.sec.gov.
`
`Special Note Regarding Forward-Looking Statements
`This MD&2A contains forwardelooking statements within the meaning of the U.S. Private Securities Litigation
`Reform Act of T995 and applicable Canadian securities laws, including statements relating to:
`
`- assumptions and expectations described in the Compangs critical accounting policies and estimates;
`
`-
`
`-
`
`-
`
`-
`
`-
`
`-
`
`-
`
`the Ccimpdrigs expectations regarding the adoption and impact of accounting pronouncements;
`
`the Connpanus expectations regarding the average selling price (“ASP”) of its Blacl<Berrg devices;
`
`the Ccmpangs estimates regarding revenue sehsitivitg for the effect of a change in ASP;
`
`the Comparigs expectations regarding gross margin;
`
`the Compangs estimates regarding its effective tax rate;
`
`the Compangs estimates of purchase obligations and other contractual commitments; and
`
`the Conipangs expectations with respect to the sufficiencg of its financial resources.
`
`The words “e:<pect", “anticipate”, “estimate”, “nnag", “will”, “should”, “intend”, “believe”, "plan" and similar
`expressions are intended to identifg forward-looking statements. Forward~lool<ing statements are based on
`estimates and assumptions made ‘pg RIM in light of its experience and its perception of histoncal trends.
`current conditions and expected future developments, as well as other factors that Rliv‘. believes are
`appropriate in the circumstances. Mang factors could cause RlM’s actual results, performance or
`achievements to differ materiallg from those expressed or mplied bg the forwara—lool<ing statements,
`including, wi:i‘out limitation, the following factors, which are discussed in greater detail in the "Risk Facfors"
`section of Ri'vi's Annual information Form, which is includeo in R|M’s Annual Report on Form 40-F;
`
`-
`
`third-portg claims for infringement of intellectual oropertg rights bu RN and the outcome of any litigation
`with respect thereto;
`
`

`
`- R|M’s ability to successfully obtain patent or other proprietary or statutory protection for its technologies
`and products:
`
`- RIMS ability to obtain rights to use software or components supplied by third parties;
`
`- potential impact of copyright levies in numerous countries;
`
`- Rii\/‘s ability to enhance current products anci develop new products on a timely basis;
`
`-
`
`intense competition within RiM's industry. including the possibility that strategic transactions by RiM's
`competitors or carrier partners could weaken RiM's competitive position or require RlM to reduce its prices
`to compete effectively;
`
`- Rlivis ability to establish new, and to build on existing, relationships with its network carrier partners and
`distributors. and its dependence on a limited number of significant customers;
`
`- R|M’s ’eliance on its suppliers for functional components and the risk that suppliers will not be able to
`supply components on a timely basis or in sufficient quantities;
`
`-
`
`the efficient and uninterrupted operation of Rl:\/i's network operations center and the networks of its carrier
`partners, and the risk of other business interruptions;
`
`- dependence on key personnel and RiM’s ability to attract and retain key personnel;
`
`- RiM's abilty to manage production facilities and its reliance on third~party manufacturers for certain
`products;
`
`-
`
`-
`
`-
`
`-
`
`-
`
`-
`
`-
`
`-
`
`-
`
`-
`
`-
`
`the occurrence or perception of a breach of Rll\/.'s security measures, or an inappropriate disclosure of
`conf dertial or personal information;
`
`the continued quality and reliability of RiM‘s products and services and the potential effect of defects in
`products and services;
`
`risks associated with Ri|Vl's expanding foreign operations;
`
`reliance on strategic alliances and relationships with third—party network infrastructure developers. software
`platform vendors and service platform vendors;
`
`effective management of growth and ongoing development of RlM's service and support operations;
`
`regulation, certification and health risks, and risks relating to the misuse of RiM’s products:
`
`restrictions on import and use of RlM's products in certain countries due to encryption of the products and
`services;
`
`reduced spending by customers due to the uncertainty of economic and geopolitical conditions;
`
`risks assocated with acquisitions, investments and other business initiatives;
`
`foreign exchange risks;
`
`tax liabilities. resulting from changes in tax laws or otherwise, associated with Rli\/|'s worldwide operations:
`
`- general commercial litigation and other litigation claims as part of RiM’s operations;
`
`- changes in interest rates affecting P.lM‘s investrrent portfolio and the creditworthiness of its investment
`portfolio
`
`- government regulation of wireless spectrum and radio frequencies;
`
`-
`
`-
`
`-
`
`-
`
`collection, storage, transmission, use and distribution of user and personal information could give r se to
`liabilities or additional costs;
`
`expansion and availability of attractive content for B.ackBerry App World;
`
`difficulties in forecasting RiM’s quarterly financial results and the growth of its subscriber base; and
`
`risks related to RiM's historical stock option granting practices.
`
`These factors should be considered carefully, and readers should not place undue reliance on RiM’s forward-
`looking statements. RiM has no intention and undertakes no obligation to update or revise any
`forward—looi«;ing statements, whether as a result of new information, future events or otherwise, except as
`required by law.
`
`

`
`
`
`
`
`Overview
`
`RIM is a leading designer, manufacturer and marketer of innovative wireless solutions for the worldwide
`mobile communications market. Through the development of integrated hardware, software and services that
`support multiple wireless network standards, RIM provides platforms and solutions for seamless access to
`time—sensitive information, including email, phone, short messaging service, Internet and intranet-based
`applications. RIM technologg also enables a broad arrag of third partg developers and manufacturers to
`enhance their products and services with wireless connectivity to data. RIM’s portfolio of award—winning
`products, services and embedded technologies are used by thousands of organizations and millions of
`consumers around the world and include the BlackBerrg‘“’ wireless solution, the RIM Wireless Handheld ”'
`product line, software development tools and other software and hardware. The Company's sales and
`marketing efforts include collaboration with strategic partners and distribution channels, as well as its own
`supporting sales and marketing teams, to promote the sale of its products and services.
`
`Sources of Revenue
`RIM’s primarg revenue stream is generated bg the BlackBerrg wireless solution, which includes sales of
`BlackBerrg wireless devices, software and service. The BlackBerrg wireless solution provides users with a
`wireless extension of their work and personal email accounts, including Microsoft Outlook“? lBM‘“‘ I_o:us Notes“,
`I\lovell"“ GroupWise"“, and mang ISP email services.
`
`RIM generates hardware revenues from sales, prirnarilg to carriers, of BlackBerrg wireless devices, which
`provide users with the abilitg to send and receive wireless messages and data. RlM's BlackBerrg wireless
`devices also incorporate a mobile phone, web—browsing capabilitg and enables the use of data functions such
`as calendar. address book. task and memo lists and other functions associated with personal organizers.
`Certain BlackBerrg devices also include multimed=a capabilities.
`
`RIM generates service revenues from billings to its Blackaerrg subscriber account base primarilg from a
`monthlg infrastructure access fee to a carrier or reseller where a carrier or other reseller bills the BlackBerrg
`subscriber. The BlackBerrg subscriber account base is the total of all subscriber accounts that have an active
`status at the end of a reporting period. Each carrier instructs RIM to create subscriber accounts and
`determines whether each subscriber account should have an active status. Each carrier is charged a service
`fee for each subscriber account each month, with substantiallg all of such service fees having no regard to the
`amount of data traffic that the subscriber account passes over the BlackBerrg architecture. if a carrier
`instructs RIM to deactivate a subscriber account, then RIIV. no longer includes that subscriber OCCOUFI1 in its
`BlockBerrg subscriber account base and ceases billing the carrier with respect to such account from the date
`of notification of its deactivation. On a quarterlg basis, RIM mag make an estimate of pending deactivations
`for certain carriers that do not use a fullg—integrated provisioning sgstem. It is, however, each carriers
`responsbiitg to report cnanges to its subscriber account status on a timely basis to RIM. The number of
`subscriber accounts is a non—financial metric and is intended to highlight the change in R|M's subscriber base
`and should not be relied upon as an indicator of RIM’s financial performance. The number of subscriber
`accounts coes not have ang standardized meaning prescribed bg US. GAAP and may not be comparable to
`similar ITTETFICS presented bg other companies.
`
`An important part of RIM's BlackBerrg wireless solution is tne software that is installed at the corporate or
`small and medium size enterprise server level, and in some cases on personal computers. Software revenues
`include fees from (i) licensing RIM's BlackBerrg Enterprise Server” (“BES") software; (ii) BlackBerrg Client Access
`Licenses (“CALs”), which are charged for each subscriber using the BlackBerrg service via a BES;
`(iii) maintenance and upgrades to software; and (iv) technical support (“T~Support").
`
`Revenues are also generated from non—warrantg repairs, sales of accessories and non—recurring engineering
`development contracts (“NRE”).
`
`

`
`Fiscal 2010 Operating Results —— Executive Summary
`The following table sets forth certain consolidated statement of operations data, which is expressed in
`thousands of dollars, for the periods indicated, except for share and per share amounts, as well as certain
`consolidated balance sheet data, as at February 27, 2010, February 28, 2009 and March 1. 2008, which is
`expressed in thousands of dollars.
`
`(in ihousarciz. except for be’ snare amounts,‘
`
`.
`.
`Revenue
`Cost of sales ..
`
`.
`..
`
`..
`
`..
`
`..
`
`.
`
`..
`
`..
`
`.
`
`..
`
`Gross margin ..
`
`.
`
`.
`
`..
`
`..
`
`.
`
`.
`
`.
`
`As at and for the Fiscal Year Ended
`
`February 27,
`2010
`
`$ 14,953,224
`8,368,958
`
`February 28,
`2009
`
`$11,065,186
`5,967,888
`
`Change
`2010/2009
`
`$3,888,038
`2,401,070
`
`March 1,
`2008
`
`$6,009,395
`2,928,814
`
`Change
`2009/2008
`
`$ 5,055,791
`3,039,074
`
`6,584,266
`
`5,097,298
`
`1,486,968
`
`3,080,581
`
`2,016,717
`
`.
`
`.
`
`.
`
`.
`
`.
`
`.
`
`.
`
`. ..
`
`964,841
`
`684,702
`
`280,139
`
`359,828
`
`324,874
`
`Operating expenses
`Research and development .
`Selling, marketing and
`Odl'i’1|i'l|Sl|'CillOF1H’
`.
`Amortization
`.
`.
`Litigation,” ..
`..
`
`1,907,398
`310,357
`163,800
`
`3,346,396
`
`3,237,870
`28,640
`
`1,495,697
`194,803
`—
`
`2,375,202
`
`2,722,096
`78,267
`
`411,701
`115,554
`163,800
`
`971,194
`
`515,774
`(49,627)
`
`881,482
`108,112
`—
`
`614,215
`86,691
`—
`
`1,349,422
`
`1,025,780
`
`1,731,159
`79,361
`
`990,937
`(1,094)
`
`989,843
`
`.
`..
`
`..
`
`.
`
`..
`
`..
`
`.
`
`.
`. .
`
`.
`Income from operations .
`Investment income.
`..
`..
`
`.
`
`.
`
`.
`
`.
`
`.
`
`.
`
`.
`
`.
`
`. ..
`..
`
`.
`
`Income before income taxes ..
`
`.
`
`..
`
`.
`
`.
`
`Provision for income taxes“ ............
`
`._
`
`.
`
`3,266,510
`
`809,366
`
`2,800,363
`
`907,747
`
`466,147
`
`(98,381)
`
`1,810,520
`
`516,653
`
`391,094
`
`Net income
`
`.
`
`.
`
`Earnings per share
`Basic
`.
`Diluted
`
`.
`
`.
`
`.
`
`.
`
`.
`
`.
`.
`
`.
`
`.
`
`.
`
`.
`
`$ 2,457,144
`
`$ 1,892,616
`
`$ 564,528
`
`$ 1,293,867
`
`$ 598,749
`
`.
`.
`
`.
`
`.
`
`.
`. ..
`
`.
`
`.
`
`.
`
`.
`
`$
`$
`
`4.35
`4.31
`
`$
`$
`
`3 35
`3.30
`
`$
`$
`
`1.00
`1.01
`
`3
`$
`
`2.31
`2.26
`
`$
`$
`
`1.04
`1.04
`
`Weighted—average number of shares
`outstanding (0005)
`559,778
`565,059
`564,492
`Basic.
`.
`..
`.
`.
`572,830
`574,156
`569,759
`Diluted
`.
`.
`.
`$ 2,590,185
`5,511,187
`$
`$ 2,103,037
`$ 8,101,372
`$10,204,409
`”otal assets.
`$ 649,623
`$ 1,577,621
`$ 374,502
`$2,227,244
`3 2,601,746
`.
`.
`"otal liabilities
`$
`8,703
`$
`103,190
`$
`58,076
`$
`111,893
`$
`169,969
`.
`.
`..
`..
`Total long~ierm liabilities.
`$1,940,562
`$ 3,933,566
`$ 1,728,535
`$ 5,874,128
`3 7,602,663
`.
`. ..
`.
`.
`.
`.
`.
`.
`.
`.
`.
`.
`.
`.
`.
`.
`Shareholders eauit
`.
`
`
`.
`.
`
`.
`
`.
`.
`
`.
`
`.
`.
`
`. ..
`..
`
`.
`
`.
`
`.
`
`.
`
`.
`
`.
`
`.
`
`.
`
`..
`.
`.
`
`.
`.
`
`.
`
`.
`.
`
`.
`
`.
`
`.
`
`.
`
`.
`
`.
`.
`
`Notes
`
`”" Selling. marketing and administration includes unusual charges of $96.4 million ana provision for income taxes includes
`a benefit of $1751 million. bath recognized in fiscal 2010 lhese items related to a charge for the payment on account of
`certain employee tax liabilities related to certain previously exercised stock options with measurement date issues that
`were €x’.€rC|S€d
`during certain time periods and the foreign exchange impact at the enactment of functional currency
`tax legislation in Canada See “l\ian—GAAP Financial Measures".
`
`‘
`
`In fiscal 2310. the Company settled all Visto Corporation (“Vista”) outstanding worldwide patent litigation (the “Vista
`Litigation’) The key terms of the settle