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Wi-Lan signs patent deal with Research in Motion

Wi-Lan signs patent deal with Research in Motion

Canadian patent-licensing company Wi-Lan Inc. said Monday that it has reached a deal with Research In Motion to license certain wireless technology patents, resolving a pending patent litigation between the two companies.
Wi-Lan said that terms of the agreement with the maker of the BlackBerry are being kept confidential, but that they have agreed to drop legal actions against each other.
The Ottawa-based company filed a lawsuit in June alleging that RIM's mobile devices and other equipment infringe Wi-Lan patents. Wi-Lan filed the suit in the U.S. District Court for the Eastern District of Texas, Marshall Division _ a court that is favored by patent-license companies seeking big judgments. Wi-Lan also named Motorola and UTStarCom in the case.
Wi-Lan, which originated as a Calgary-based technology developer and wireless equipment maker, said its 2008 financial results will be better than previously expected, in part because of the new deal.
"The company's revenues result from the licensing of intellectual property which, by its very nature, is directly affected by the timing of the closure of license agreements, the nature and extent of specific licenses including actual rates, product sales by licensees which can be subject to seasonality, as well as overall market demands and the timeliness of the receipt of licensee royalty reports," the company said in a statement.
Wi-Lan now expects its revenues for the fiscal year will be within the range of $24.5 million Canadian dollars (US$22.9 million) to C$25.5 million (US$23.9 million). That's up at least 22.5 percent and as much as 70 percent from the previous guidance of C$15 million (US$14 million) to C$20 million (US$18 million).
With the addition of RIM, Wi-Lan has signed 34 companies to license wireless patents, the company said in a statement Monday.
Wi-Lan shares gained 47 shares to C$2.25 (US$2.10), a jump of 26.4 percent on the Toronto Stock Exchange. RIM shares dropped C$1.29 (US$1.20) to C$141.46 (US$132), a drop of nearly 1 percent.


Updated : 2021-03-08 09:52 GMT+08:00