Shares of Wi-LAN (Wi-LAN Stock Quote,Chart, News: TSX:WIN) spiked today after the company announced it had reached an agreement with HTC. The pair, who had a court date scheduled for later this year, reached a multiyear licence to certain Wi-LAN patents for mobile handsets and tablets sold within the United States.
For Wi-LAN investors, who watched the company’s stock rise more than 10.7% as more than two-million shares traded hands, the move was a return to form.
In July, shares of the Ottawa-based patent player fell more than 30% after announcing that it was not successful in its case against Alcatel Lucent, Ericsson, HTC, and Sony. A jury in the U.S. District Court for the Eastern District of Texas, Tyler Division, determined that the four patents in suit were not infringed upon.
The loss was not only the first time Wi-LAN had lost a case, it was actually the first time the company had been to trial.
CEO Jim Skippen reminded shareholders of this legacy when he listed the roster of partnerships HTC will join.
“We are pleased to have reached this agreement with HTC,” said Jim Skippen, president and chief executive officer. “In taking its first licence, HTC will join many other handset makers, including Samsung, LG and Motorola, who recognized the value of the many wireless inventions in our patent portfolio.”
Next up for Wi-LAN is a biggie: late last year, the company filed three suits in the Southern District of Florida against Apple, HTC and Sierra Wireless, claim infringement of WiLAN’s U.S. Patent Nos. 8,315,640 and 8,311,040 related to LTE technologies.
Industrial Alliance analyst Al Nagaraj believes the wind may now be back at the company’s back. Her believes March ruling from its Markman Hearing in the Apple case was favourable. He believes Wi-LAN will win the trial, which is scheduled for October.