OTTAWA, Ontario – December 6, 2006
– Wi-LAN Inc. (TSX: WIN) announced today that Nokia Corporation of Finland has licensed the Wi-LAN patent portfolio.
Under the terms of the agreement, Nokia receives a fully paid-up license to Wi-LAN’s current patent portfolio. In partial consideration for this license, Nokia will transfer to Wi-LAN patents, both issued and pending, related to telecommunications and asymmetric digital subscriber line (“ADSL”) technologies. These patents have been valued at $34 million, based on a preliminary independent valuation by a large accounting firm. As additional consideration, Nokia will pay approximately $15.2 million (€10 million) immediately to Wi-LAN. Additional details of the agreement must be kept confidential.
ADSL is the access technology used by over two thirds of the world’s 255 million broadband Internet subscribers and allows service providers to supply high-speed Internet access to residential and business customers over their standard telephone lines.
“We are delighted that Nokia is the first company to have taken a license since we refocused the company on licensing intellectual property.” said Jim Skippen, President & CEO of Wi-LAN. “We believe there are well over 140 companies that require a license to our patents, so despite being satisfied with the Nokia deal, our licensing team remains busy and focused on furthering our discussions with a number of other companies.”
"This deal, including the sale of Nokia ADSL patents, fits nicely with Nokia’s strategic approach by further enhancing the return from Nokia’s patent assets, and by securing access to the next generation wireless technologies," said Ilkka Rahnasto, Vice President, Nokia Intellectual Property Rights.
“This is the first license signed under our Early License Program, which was launched on October 12 and offers preferential rates to early licensees.” said Bill Middleton, VP Licensing and General Counsel of Wi-LAN. Although as in this case with Nokia, we prefer to negotiate a settlement wherever possible, we are prepared to litigate if necessary to ensure Wi-LAN receives fair compensation for the use of its intellectual property.”About Wi-LAN Inc.
Wi-LAN, which was founded in 1992, licenses intellectual property that drives a full range of products providing access to wireless and wireline telecommunications markets. Some of the fundamental technologies covered by Wi-LAN’s patents include: CDMA, Wi-Fi, WiMAX and ADSL. Wi-LAN has already licensed its intellectual property to a number of major companies, including Cisco, Fujitsu and Nokia.