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TORONTO (DOW JONES) _ Shares of Research In Motion Ltd. leaped Friday after the wireless products company announced a software-licensing agreement with Finnish cell phone giant Nokia Corp.
Research in Motion’s stock closed at $16.56 on the Nasdaq Stock Market, up $3.50, or 27 percent.
The Toronto-based company makes wireless products for the mobile personal communication market. They include the BlackBerry wireless e-mail service and RIM Interctive Pager 950.
The agreement announced Friday gives Nokia the right to use and distribute certain BlackBerry software in conjunction with Nokia products, on a global basis. It wasn’t announced which Nokia products would incorporate the Research In Motion software.
It was the second licensing agreement announced by Research In Motion in two days. On Thursday, the company said Palm Inc., the big personal digital-assistant maker, agreed to license certain Research In Motion keyboard patents.
Earlier this week, Research In Motion said it dropped a patent-infringement lawsuit against Handspring Inc. after the provider of wireless Internet products agreed to negotiate a license agreement for certain Research In Motion keyboard patents.
While investors weren’t impressed with the Palm and Handspring news, Friday’s rally indicated that the Nokia announcement was another matter.
Analysts said Research In Motion will receive a relatively small upfront licensing fee as part of its pact with Nokia.
The main benefit was expected to come from the recurring revenue generated from carriers that buy BlackBerry-enabled Nokia handsets.