WiLAN, Nokia ink multi-year license deal
WiLAN and Nokia Networks have signed a broad multi-year agreement in which Nokia Networks receives a license to a portfolio of WiLAN's wireless technology patents.
WiLAN's patented wireless technology is used in a variety of wireless infrastructure products that Nokia Networks incorporates in the production and marketing of wireless handset products.
The patents covered in this deal are in CDMA, WCDMA, GSM, HSPA and 4G/LTE wireless technologies.
Jim Skippen, president and CEO of WiLAN, stated "We are very pleased to have negotiated this license with Nokia Networks. It underscores the value of the technologies that we have added to our portfolio of wireless products."
In a separate agreement between the two firms, WiLAN will acquire several of Nokia Network's patents that cover existing and forthcoming wireless technologies.
About that transaction, Skippen said "Nokia has been at the forefront of the development and commercialization of wireless communication technology for decades. The acquired patents will add significant value to our wireless portfolio and we believe will aid in the signing of future licenses."
WiLAN was established in 1992 as a technology innovator and licensing company. They have agreements with over 280 companies for intellectual property relating to communications and consumer electronics products. These products include 3G and 4G handsets, Wi-Fi-connectable laptops, broadband routers, xDSL equipment, cellular base stations and digital TV receivers.
Nokia Networks (formerly Nokia Solutions and Networks and Nokia Siemens Networks) specializes in products and services that center around mobile broadband technology. They were a key player in the rollout of GSM network technology and in the development of the current Long Term Evolution (LTE) network standard.
The market reacted with mixed feelings over the deal. WiLAN's Toronto Stock Exchange (TSX) listed shares gained 0.3 percent to C$3.38. However, WiLAN's NASDAQ-listed shares dropped as much as 1.2 percent to $3.16. The company's 52-week high is C$4.91. WiLAN has been involved in a long legal dispute with Apple Inc. over WiLAN U.S. patents. The litigation began in September 2011, and a jury ruled against WiLAN initially. In April of this year, A U.S. Appeals Court ruled that the jury had no grounds for ruling against WiLAN. Based on this judgment, WiLAN is appealing the case in U.S. Federal court again.
WiLAN and Nokia Corporation, the parent company of Nokia Networks, signed an agreement in December 2006 on sharing licensing of WiLAN's patents at that time.
All other details of the license and acquisition agreements remain confidential.