• by Mark Walsh  @markfwal, August 5, 2010

Things aren't looking so good for BlackBerry-maker Research in Motion. The company is tussling over security and privacy issues with countries including the United Arab Emirates, Saudi Arabia and India. The European Commission this week selected the iPhone and HTC phones over the BlackBerry for its employees. And RIM's highly anticipated answer to the iPhone and the latest Android phones -- the Torch 9800 -- is getting mixed early reviews.

With the Torch, RIM seems to have come up short in its bid to win over more non-business users. Initial reviews have pointed out that the phone's touchscreen is smaller than that of competing models and has lower resolution. The processor and memory aren't on par with the best Apple and Google have to offer and, most crucially, it doesn't come close to matching the selection of third-party apps in the App Store or Android Market.

Wireless partner AT&T is kicking off a national ad campaign to support the Torch. I haven't seen any of the new ads, but it's a good bet the carrier will try to highlight some of the new features designed to make the phone more consumer-friendly, like upgraded video and music players and social-networking shortcuts.

But maybe RIM should consider a separate marketing effort that plays to the BlackBerry's traditional strength as an enterprise device, tied to the security standoff with the Persian Gulf states. Take the controversy and try to turn it in the company's favor by highlighting how secure email and other messaging are on the BlackBerry. "Banned in Dubai" could become a branding badge of honor for RIM, standing on behalf of its customers' mobile privacy against repressive governments.

Mike Lazaridis, founder and co-chief executive of R.I.M, has already struck a defiant tone over the UAE and Saudi governments' plans to suspend BlackBerry messaging services, saying the company won't "compromise" relationships with customers (at least enterprise customers). Laziridis could take a page from Sprint CEO Dan Hesse's book and appear in spots himself, promoting the BlackBerry's airtight encryption.

Even so, the RIM founder has said he's hopeful that some kind of agreement acceptable to both sides can be reached with various governments. The fact is, the company can't afford to lose large global markets to the iPhone or Android-based devices while it's already losing ground in the smartphone wars. And now Indonesia is reportedly making noises about the BlackBerry network as well.

However the issue is resolved, the controversy has still left the impression that RIM has a more secure network than its competitors, even if the BlackBerry isn't as good for watching videos or downloading the latest hot game. And that's something the company could emphasize in advertising.