• Welcome
    Sponsors
  • Director
    Members
    Advisory Board
    International Advisory Council
    Research Affiliates
    IPilogue Editors
    Alumni
  • IPilogue
    Events
    Publications
  • JD
    Graduate Program
    Clinical
    Prizes & Awards
  • The IPIGRAM Archive
    Events Archive
    IP in the News
    IP Poll of the Week
    IP Pick of the Week
    Gowlings IPilogue Prize
  • Legislation
    Journals
    Government
  • Contact Us
    Subscribe

RIM’s Battle for Information Privacy, Market Share, and its Reputation

August 20, 2010 by Robert Dewald (IPilogue Editor)

Robert Dewald is a J.D. Candidate at Osgoode Hall Law School 

Canadian telecommunications giant Research in Motion (RIM), which manufacturers the popular BlackBerry, has reportedly offered information and tools to assist India’s government in monitoring encrypted emails and messaging services (Reuters).  India, which had threatened to shut down the BlackBerry service, is the latest country to pursue access to user communications from RIM.  Recently the governments of Saudi Arabia and the United Arab Emirates have also threatened to ban BlackBerry services unless RIM provides access to user data (Reuters).

The threat by foreign governments to ban BlackBerry services poses a serious danger to RIM.  Competitors in North America continue to eat away at RIM’s once dominating grasp on the smart-phone market, and RIM wishes to expand in the global marketplace to further develop its customer base.  The Montreal Gazette reported that during the last fiscal year, 37 per cent of RIM’s $15 billion in revenue came from outside North America, up from 23 per cent about five years ago.  The demand for security concessions from countries such as India may threaten to erode RIM’s customer base as smart-phone manufacturers Nokia and Apple have already lined up to move into this market. 

RIM, unlike rivals Nokia and Apple, controls its own networks, which handle encrypted messages through centres in Canada and the UK.  Should BlackBerry service be restricted in India, Nokia and Apple would easily snatch up RIM’s market share. This is because Nokia and Apple rely on local telecommunications infrastructure to transmit their data allowing easy government oversight.  As a result Nokia and Apple would not be subject to a similar ban, as proposed by the Indian government against RIM. 

India has suffered deadly attacks, by both home grown and foreign militants, with some regularity for years. Mohammed Ajmal Kasab, the lone surviving gunman in the 2008 Mumbai attack, told an Indian court that he and his comrades all had Nokia mobile phones (Huffington Post).  India and other foreign governments are seeking access to encrypted Blackberry communication that could be used to coordinate national security threats.    

In response, RIM has assured its customers ‘that it genuinely tries to be as cooperative as possible with governments in the spirit of supporting legal and national security requirements’ (RIM Release).   RIM stated that a foreign government’s access to BlackBerry communications should not be boundless, and ‘lawful’ access be limited by four principles.  First, that access be restricted to the context of national security requirements as governed by the country’s judicial oversight and rules of law.  Second, government access to BlackBerry services should be no greater than regulators already impose on RIM’s competitors and other similar communications technology companies.  Third, no changes will be made to the BlackBerry’s security architecture and finally that RIM will maintain a consistent global standard for lawful access requirements that does not include special deals for specific countries.

RIM and other companies will likely continue to work with foreign lawmakers in their respective countries to resolve national security concerns.  However, in doing so RIM risks damaging an important aspect of its business, its reputation.

BlackBerry Messenger users have long enjoyed the secure end-to-end encryption methods used by RIM to scramble information sent from one RIM phone to another.  However, as reported by the Globe and Mail, RIM may have agreed to place a BlackBerry server inside Saudi Arabia and more recent reports indicate RIM may hand over the “codes” to all local BlackBerrys to the Saudi government. Providing such information has drawn RIM into the ongoing debate of the morality and ethics of allowing foreign government access to communications that can be used to quell political dissent and imprison human rights advocates.  The Toronto Star reported the comments of Ron Deibert, director of the Citizen Lab at the University of Toronto’s Munk School of Global Affairs: “These can be ruthless nasty regimes where political opposition or human rights advocates are imprisoned or worse. In colluding with them, [RIM is] assisting in that abrogation of human rights.”

Canada and the United States (U.S.) have aligned behind RIM against access to Blackberry communication, citing the need to defend consumer privacy and internet freedom (Embassy).  The economic interests of Canada and U.S. are also at stake, which may have instigated the strong response by these countries against the proposed BlackBerry bans.  Patrick Leblond, an expert on international economic integration and government-business relations at the University of Ottawa summarized Canada’s position “It is good business for the Canadian government to stand up for RIM, since this is one of the world’s leading technological companies, and ‘what is good for RIM is good for Canada.’”   

RIM’s struggles with foreign governments to maintain its security systems and preserve its market share will likely expand to other forms of communication.  Any concessions made by RIM may set a precedent for future negotiations between foreign governments and other communications companies.  As reported by the Times of India, the Indian government is already considering a crackdown on Google and Skype to gain access to the information transmitted by these services. Moving forward, it will be interesting to observe the impact that RIM’s security negotiations will have on other communications based companies.

Posted in Cross Border Issues, Human Rights Issues, IP, Privacy, Technology, Telecommunications

Leave a Reply

All replies and responses are moderated and will not appear on the site immediately. Please see our response policy.

« Transnational Regulation: Rough Consensus and Running Code | Fashion IP Revisited: The Innovative Design Protection and Piracy Prevention Act »

Career Opportunities
Osgoode IP Club
Writing Competitions
IP Research Guide

Follow @IPilogue

RSS Follow Comments via RSS
  • Denise Brunsdon on The Living Daylights (…Scents, Tastes, and Sounds): Bill C-56 Forebodes Drastic Trade-mark Reform
  • Denise Brunsdon on Must Every Canadian Patent Application Include the Inventor’s Best Mode of Working the Invention?
  • Matt on Mario Bouchard: Copyright Quintet opus 1. no.1, by McLachlin et al
  • Danny Titolo on The ‘Myriad’ with the Golden ‘Gene’: Australia Upholds Breast Cancer Gene Patents
  • Tracy Ayodele on Exceptions which Circumvent Logic
  • Nancy Situ on Military Tactics and Rock Star Patent Lawyers; the Patent System under Stress
  • Laura on The Rise and Fall [and Rise Again?] of BlackBerry
  • Howard Knopf on How Music Can Help You, And You Can Help Music – An Interview With Graham Henderson
  • Paul Atkinson on Bill C-56 Remedies: Rights Holders Can All Feel a Little Safer
  • Bart Cormier on The Living Daylights (…Scents, Tastes, and Sounds): Bill C-56 Forebodes Drastic Trade-mark Reform
RSS Follow Posts via RSS
  • New Step for the Modernization of Copyright Law in the US – Progress or Regress?
  • Reminder: Canada’s IP Writing Challenge 2013
  • Property in Brands
  • Strike Three, Viacom
  • New Book – The Copyright Pentalogy: How the Supreme Court of Canada Shook the Foundations of Canadian Copyright Law
  • The Curious Case of Fake Beijing Olympics Merchandise
  • About the Boundaries of Fairness in Fair Use
  • Who Inherits Your Likes?
  • Game of Thones – Piracy is Coming
  • AEREO, Cable, What’s The Difference?
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • 2013
  • 2012
  • 2011
  • 2010
  • 2009
  • 2008
  • 2007
  • Advisory Board (9)
  • Announcements (31)
  • Blogs (24)
  • Book Review (5)
  • Broadcasting Regulatory Policy (8)
  • Cloud Services (11)
  • Commercialization (90)
  • Competition (19)
  • Competition Law (14)
  • Contracts (69)
  • copyright reform (158)
  • defamation (19)
  • Design (15)
  • Development (6)
  • European Union (54)
  • events (88)
  • Fashion Industry (22)
  • Feature Post (206)
  • Freedom of Speech (22)
  • Freedom of the Press (17)
  • Gaming (9)
  • General (151)
  • Human Rights (10)
  • Image (6)
  • Innovation (156)
  • Internet (274)
  • IP (1242)
    • Copyright (617)
      • CD Levy (10)
      • Digital Downloads (78)
      • Digital Libraries (7)
      • Digital Locks (34)
      • Fair Dealing (79)
        • Parody (2)
        • Satire (1)
      • Infringement (157)
      • Internet Sharing (96)
      • Literary Works (65)
      • Moral Rights (15)
      • Movies (53)
      • Music Industry (104)
      • Originality (33)
      • Ownership (107)
        • Licensees (39)
      • Secondary (ISP) Liability (18)
      • Subsidiary Rights (5)
    • IP Reform (37)
    • Patents (381)
      • Access to Medicines (21)
      • Cross Border Issues (50)
      • Electronic Processes (20)
      • Infringement (72)
      • Patent Practice (27)
      • Patent Trolls (21)
      • Patentability (109)
      • Pharmaceutical Drugs (75)
    • Trademarks (243)
      • Domain Names (44)
      • Famous Marks (20)
      • Official Marks (11)
      • Parallel Importation (4)
      • Personality Rights (12)
  • IP Course Topic (13)
  • IP Intensive (26)
  • IP Litigation Practice (17)
  • Jurisdiction (176)
    • Canada (80)
    • Indonesia (1)
    • Japan (2)
    • UK (41)
    • US (74)
  • Law & Music Course Topic (21)
  • Links (3)
  • MediaLaws (17)
  • Music Industry (85)
  • Open-Source (18)
  • Osgoode Alumnus (14)
  • Patents Course Topic (28)
  • Privacy (188)
    • Electronic Databases (42)
    • Human Rights Issues (31)
    • Identity Theft (14)
  • Regulatory Policy (64)
  • Reputation Management (4)
  • Smartphones (14)
  • Social Justice (4)
    • United Nations Development Programme (2)
  • Social Media (30)
  • Supreme Court of Canada (34)
  • Tech Transfer (31)
  • Technology (245)
  • Telecommunications (89)
  • Trade Secrets (9)
  • UK (19)
  • Uncategorized (102)
  • US-Canada Relations (4)
  • WIPO (16)
  • Log in

Home   |   Contact Us   |   Feedback  |   Privacy   

© 2008 Osgoode Hall Law School York University
4700 Keele Street Toronto, Canada M3J 1P3
T:416.736.5030   F:416.736.5736