NEW YORK – Patent holding company NTP Inc. said on Monday it filed a patent infringement lawsuit against Palm Inc. (PALM), maker of the Treo mobile phone, in a U.S. court, sending Palm shares down more than 7 percent.
The suit alleges that Palm's products and services infringed NTP's patents and seeks recovery of monetary damages resulting from Palm's direct and indirect infringement, the intellectual-property firm said in a statement.
Specifically, NTP said it is targeting services and systems primarily used or adapted for use in e-mail systems with radio frequency communications to mobile processors and related services.
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A Palm spokeswoman was not immediately available for comment.
NTP said it would prefer to resolve the issue via a negotiated license agreement.
Shares of Palm fell 8.1 percent, or $1.24, to $14.17 in afternoon trade on Nasdaq.