General Patent Corporation’s headquarters in Suffern, New York.Wi-LAN (TSE:WIN) and General Patent Corp. (GPC) said Wednesday they would form a new venture that will focus on patent acquisition and monetization.
According to the deal, Wi-LAN will provide financial investment to acquire patents, while GPC will be in charge of daily operations.
“This is an exciting new venture that leverages the strengths of our two organizations,” chief executive Jim Skippen of Wi-LAN said in a statement.
“I believe that GPC, a company with long standing and successful history of helping inventors enforce and monetize patents, is well positioned to lead this venture.”
GPC’s CEO, Alexander Poltorak, said GPC is “pleased” to collaborate with Wi-LAN to identify and acquire new patents and patent portfolios.
“This is an important enterprise that we expect to reap results for years to come.”
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Earlier this week, Wi-LAN acquired more than 150 patents from broadband solutions provider Alvarion Ltd. (NASDAQ:ALVR) for $19 million.
Alvarion received $8.5 million at closing of the deal, while the remaining balance will be due after some conditions are met, mainly approval from Israel’s office of the chief scientist.
Wi-LAN, which licenses out a range of intellectual property in the consumer electronics and communications market, said it the portfolio has broad applicability to 4G infrastructure and handsets.
As part of the deal, Alvarion was also granted a royalty-bearing license for the patents sold to Wi-LAN, which at the end of last year held a portfolio of around 3,000 patents.
Shares of Wi-LAN fell 0.54 per cent to $5.54 each.