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Wi-LAN Settles With Cisco

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CALGARY, Canada -- Wi-LAN Inc. (TSX:WIN) announced today that it has signed an agreement with Cisco Systems Inc. (NASDAQ:CSCO) in which the companies have agreed to terminate all legal actions pending between them. Under the agreement, Cisco purchased from Wi-LAN several issued and pending patents relating to WiMAX and antenna technology, and has granted Wi-LAN a license to use these patents in its products. Wi-LAN will retain ownership of its remaining patent portfolio, including its W-OFDM patents and the majority of its other patents that relate to implementation of WiMAX and other broadband wireless systems. As part of the agreement, Cisco also received a license to Wi-LAN's patent portfolio. Other terms and conditions of the agreement are confidential.

Cisco Systems Inc.

Wi-LAN Inc.
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frnkblk
User Ranking
Monday December 5, 2005 11:25:01 PM
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A key point for Wi-LAN moving forward is that they are interested in WiMAX technology, not 'old' OFDM stuff applied to 802.11a/g.

Remember that Wi-LAN has gone through some financial challenges in the last year, and so the last thing they need is a long (read: expensive) protracted battle with Cisco, who likely spends more on their legal department in a year than what Wi-LAN generates in revenue.

By selling some patents Wi-LAN can generate the necessary cash to keep their business going. They have a license to use the patents they sold, and used this announcement to re-iterate their patent portfolio strength in WiMAX technologies.
FastFourier
User Ranking
Monday December 5, 2005 6:27:52 PM
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Wi-LAN and Cisco are saying nothing else about this deal.

Wi-LAN's suit was for C$ 100 million across all Cisco ( read linksys) 11a and 11g products in Canada.

This settlement news describes WIMAX mac and phy patents - and it is extremely odd that the "gap" between what the suit was about, and what little the settlement describes has gone without clarification.

FWIW - a lot of wi-lan investors are upset at the lack of disclosure.
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