OTTAWA - Wi-LAN Inc. (TSX:WIN) and Alcatel-Lucent USA Inc. have agreed to settle their dispute over several patents and withdraw litigation before U.S. district courts in Florida and Texas.
Financial terms of their agreements weren't disclosed in Wi-LAN's announcement Monday but shares of the Ottawa-based company rose about eight per cent from Friday's close on the Toronto Stock Exchange.
The stock is still down since mid-July, when a jury in Texas ruled against Wi-LAN in a patent suit against several companies, including Alcatel-Lucent.
Wi-LAN's revenue primarily comes from payments received from other companies that use technology covered by its portfolio of patents.
As part of the deal with Alcatel-Lucent, announced Monday, the U.S.-based telecommunications equipment maker gets a multi-year licence to certain Wi-LAN patents related to wireless products.
Under a separate agreement, Wi-LAN will acquire from Alcatel-Lucent a portfolio of patents. Terms and conditions of the two agreements were kept confidential.
"We are very pleased to have reached a business resolution to our licensing discussions with Alcatel-Lucent, and to add them to our list of licensees," said Jim Skippen, President & CEO.
"The addition of Alcatel-Lucent patents and applications to our wireless portfolio continues to expand the value we are able to offer to our existing and future licensees."
Wi-LAN traded at $3.69 at mid-morning, up 30 cents from Friday's close but down from $4.91 on July 12, ahead of the Texas jury's ruling in favour of Alcatel-Lucent, Ericsson Inc., HTC Corporation and Sony Mobile Communications.
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