The Canadian company said it had reached a "full and final settlement" with NTP Inc., a US firm that had accused RIM of violating its patents in the mobile software used in the Blackberry.
"All terms of the agreement have been finalised and the litigation against RIM has been dismissed by a court order this afternoon," the Blackberry maker said in a statement.
"The agreement eliminates the need for any further court proceedings or decisions relating to damages or injunctive relief," it said.
"NTP grants RIM an unfettered right to continue its business, including its BlackBerry-related business."
The BlackBerry, which can be used for phone calls, wireless e-mail and Internet browsing, became the world's top-selling personal digital assistant last year with some 4.3 million users, moving ahead of Palm.
The prospect of a shutdown of the BlackBerry service had struck fear into the three million US users whose addiction to the device has earned it the nickname "Crackberry".
The settlement resolves a long-running fight between the two companies that went all the way to the US Supreme Court after a federal court found in 2002 that RIM's BlackBerry technology violated patents held by NTP.
A week ago, a judge in Virginia rejected an injunction sought by NTP that would have been catastrophic for RIM, but urged both companies to settle their dispute.
RIM said it had already put aside $US450 million ($A602.21 million) on its books for a possible settlement, and that the additional $US162.5 million ($A217.46 million) dollars would be recorded in its next quarterly report due on April 6.
The settlement will not do too much harm to the Canadian company's cash pile, which stood at $US1.8 billion ($A2.41 billion) dollars at the end of November.