Components | April 29, 2011
Final Defendant PCD settles with WiLAN
Wi-LAN confirmed that four litigations that were scheduled for trial in early 2011 have been dismissed as a result of agreements signed with major semiconductor and product vendors.
In October 2007, WiLAN initiated two patent infringement actions in the U.S. District Court for the Eastern District of Texas related to Wi-Fi, CDMA and DSL technologies in laptops and wireless router equipment. These litigations have been dismissed due to license agreements signed with semiconductor vendors Atheros Communications, Inc., Broadcom Corporation, CSR plc, Intel Corporation (“Intel”), Marvell Semiconductor, Inc., Ralink Technology Corporation and Realtek Semiconductor Corporation or agreements directly with specific product vendors. The majority of the licensing obligations of the product vendors are covered by license agreements signed with their semiconductor suppliers. In addition, the agreement signed with Intel has resulted in the dismissal of litigation involving WiMAX technologies filed by Intel, in October 2008, in the U.S. District Court for the Northern District of California. In July 2008, the Company filed a complaint of patent infringement, in the U.S. District Court for the Eastern District of Texas, related to Wi-Fi and CDMA technologies in cellular handsets. The Company and the last defendant, Personal Communication Devices, LLC (“PCD”), have settled on financial terms that are confidential. With the dismissal of PCD and license agreements previously announced with LG Electronics Mobilecomm U.S.A., Inc., LG Electronics, Inc., Motorola Solutions, Inc., Motorola Mobility, Inc., Research in Motion Limited and UTStarcom Inc., this case has been dismissed. “The license agreements that we have signed with major semiconductor and product vendors have secured hundreds of millions of dollars in future revenues for WiLAN and send a strong message to the marketplace about the value of our technology,” said Jim Skippen, Chairman & CEO. “I am very pleased that these litigations have been resolved without the expense of going to trial.” The terms of all agreements, including amounts to be paid, are confidential. In general, most license agreements call for the payment of quarterly running royalties which generate long-term recurring revenue.
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