© alinoubigh Business | October 29, 2012

Update: WiLAN vs. Hon Hai

WiLAN filed a law suit against Hon Hai Precision Industry Co. Ltd. in Florida State Court concerning Hon Hai's failure to report sales and revenues as required under a license agreement signed with WiLAN in January 2008.
Subsequently, on October 23, 2012, Hon Hai filed a suit in New York requesting a declaration that Hon Hai does not infringe WiLAN's V-Chip patent and to declare the patent invalid. WiLAN has not yet been served with the New York suit.

WiLAN believes that Hon Hai's filing of this suit in New York is a tactical response related to WiLAN's filing of the initial suit in Florida. This tactic was anticipated by WiLAN as one possible response by Hon Hai, and is not entirely unexpected.

WiLAN does not consider these suits to be material changes. Hon Hai is a relatively small TV and display licensee in terms of its historical payments to WiLAN. Aggregate TV and display revenues continue to be consistent with management's expectations.

WiLAN's key V-Chip patent was put into re-exam several years ago at the request of a third party. As a result of the re-exam process, the United States Patent and Trademark Office (USPTO) confirmed the validity of all claims in the patent and added more than 30 new claims. The re-examination certificate was issued by the USPTO on August 21, 2012.


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