Agreement relieves company of large royalty commitment
CALGARY, Canada – March 24, 2006 – Wi-LAN Technologies Corporation, the newly created patent licensing subsidiary of Wi-LAN Inc. (Wi-LAN or “the Company”) (TSX:WIN), today announced the purchase of substantially all of the assets of Ensemble Communications Inc., based in La Jolla, California. This transaction is consistent with the Company ’s strategy to focus its core business on its patent portfolio.
Under the terms of the agreement, Wi-LAN buys back the patent purchase and royalty commitment executed between Wi-LAN and Ensemble in 2004, which provided Wi-LAN with its current WiMax MAC patents. As part of the prior deal, Ensemble acquired licensing rights to the Wi-LAN patent portfolio, and significant revenue sharing on any licenses Wi-LAN sold in the future. Today’s announcement in effect relieves the Company of these commitments. Wi-LAN also receives inventors’ files, drawings and notes for other technology Ensemble was working on prior to its wind-up in 2004, as well as a license to a number of additional patents that are complementary to Wi-LAN's current portfolio.
“As Wi-LAN continues to aggressively change its business plan to leverage its core assets, the removal of a license to our patent portfolio and the removal of revenue sharing provisions to Ensemble sets the stage for Wi-LAN’s licensing initiatives, which are already formalized and well underway,” said Bill Dunbar, President and CEO, Wi-LAN Inc. “Wi-LAN Technologies Corp. is the vehicle that will be negotiating licenses with companies in a number of markets this year that utilize Wi-LAN's many patented technologies including its fundamental US and Canadian patents in OFDM technology, and its global WiMax MAC patents. We will be making further announcements in this area imminently.”
Ensemble Communications will receive consideration for the transaction of 2,000,000 Wi-LAN common shares upon closing which is expected on March 31, 2006.
About Wi-LAN Inc.
Wi-LAN is transforming itself into a company focusing and capitalizing on the value of its patent portfolio. Its focus and assets are central to the WLAN and WiMAX markets where the Company believes its patented technology is necessary for devices using the IEEE 802.11a and 802.11g standards (the 2 nd generation Wi-Fi Alliance standards) and the implementation of WiMAX Forum Certified devices.
Wi-LAN is a charter member of the WiMAX Forum ( www.wimaxforum.org). Additional information on Wi-LAN can be found at www.Wi-LAN.com.