Shares up in patent licensing company Wi-LAN

OTTAWA – Shares in patent licensing company Wi-LAN Inc. (TSX:WIN) gained nearly 10 per cent Monday after the company settled a patent lawsuit with Dell Inc.

Wi-LAN shares closed up 39 cents at $4.65 on the Toronto Stock Exchange.

Terms of the agreement, which will see the litigation between the two companies dismissed, were not disclosed.

Under the agreement, Dell has obtained a licence from Wi-LAN to a subset of wireless patents.

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Wi-LAN had filed the lawsuit in September 2011 in U.S. District Court in Texas against Dell and several other companies alleging infringement over key Wi-Fi and CDMA patents.

Earlier this month Wi-LAN, which reports in U.S. dollars, said Wednesday its loss for the quarter ended March 31 was US$6.4 million or five cents per share, an improvement over a loss of $14.4 million or 12 cents per share a year ago.

However, revenue from royalties declined to US$18.4 million from US$24.7 million.

Adjusted earnings were $1.3 million or a penny per share, down from $15.4 million, or 13 cents per share, in the comparative period, due to lower revenue and higher litigation expenses.

Wi-LAN has a portfolio of more than 3,000 issued or pending patents which its licenses to companies globally for a wide range of consumer electronics products.