WiLAN loses patent bid to HTC, Sony

Ottawa-based wireless technology company WiLAN Inc. has lost its patent suit against HTC Corp., Sony Mobile Communications, Alcatel-Lucent USA Inc. and Ericsson Inc.

WiLAN (TSE: WIN) yesterday expressed disappointment over the a Texas district court’s ruling that the four companies had not infringed upon its four patents and said that is now reviewing its options. Reports said that certain claims in three of the four patents were found invalid by the court.

Jim Skippen, CEO, WiLAN
WiLAN licenses the rights to its patents. It earns money from royalty payments paid by companies that use its technology. WiLAN is estimated to have more than 3,000 issued patents and pending patents. More than 650 of its wireless patents are related to 4G technology.

Last year, WiLAN also suffered a similar setback when the a U.S. appeals court affirmed a lower New York state court ruling that LG Electronics did not infringe on the Canadian firm’s V-Chip patent.

WiLAN shares soared in June by as much as 14 per cent after the expansion and renewal of its existing deal with Samsung Electronics Co. Ltd. The potential revenue from the deal was estimated to be between $15 million and $20 million.

Following the announcement on Monday, Wi-LAN shares fell 32 per cent, or $1.61, to $3.30 on the TSX.
Robert Young, analyst for Canadacord Genuity, believe the slide is an “over-reaction” to the jury decision. He said it will have only a moderate impact on WiLAN because of the company’s ability to generate revenue growth from the development of its “low-risk and existing backlog of contracts.”
Young said WiLAN can still appeal the court decision and it also has some existing and new suits related to its other patents.

Read the whole story here and here

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