Final Defendant PCD settles with WiLAN
OTTAWA, Canada – April 26, 2011 – Wi-LAN Inc. (“WiLAN” or the “Company”) (TSX:WIN) today 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. Revenues for fiscal 2010 were $50.7 million and, as previously reported, revenues for the fiscal year ending December 31, 2011 are expected to more than double and be in the range of US$110.0 million to $115.0 million. Adjusted Earnings* for the fiscal year ending December 31, 2011 are expected to be in the range of US$75.0 million to $80.0 million.
WiLAN, founded in 1992, is a leading technology innovation and licensing company. WiLAN has licensed its intellectual property to over 250 companies worldwide. Inventions in our portfolio have been licensed by companies that manufacture or sell a wide range of communication and consumer electronics products including 3G cellular handsets, Wi-Fi-enabled laptops, Wi-Fi/DSL routers, xDSL infrastructure equipment, WiMAX base stations and digital television receivers. WiLAN has a large and growing portfolio of more than 1300 issued or pending patents. For more information: www.wilan.com.
(*) WiLAN follows GAAP in preparing its interim and annual financial statements. The Company has now adopted the term Adjusted Earnings instead of Pro forma Earnings which has been used in previous years, although the Company’s definition of Adjusted Earnings remains the same as its definition of Pro forma Earnings, being earnings from continuing operations before stock-based compensation, unrealized gain or loss on foreign exchange contracts, depreciation & amortization, provision for income taxes and certain other one-time charges. Adjusted Earnings is a non-GAAP financial term.