WiLAN climbs on patent deal with AlcatelLucent

Wi-LAN Inc. shareholders have been waiting for some good news ever since the Ottawa-based patent licensing company lost its 3GPP case against Alcatel Lucent, Ericsson, HTC and Sony in July.They got that good news on Monday when Wi-LAN announced has settled with Alcatel Lucent USA Inc. over several patents and withdrawn litigation before U.S. district courts in Florida and Texas.Terms of thee agreements weren’t disclosed, but Eyal Ofir, an analyst at Clarus Securities, estimates the agreement with Alcatel-Lucent is worth $5-million to $10-million per year over a five-year term.Wi-LAN rose 7% to $3.63 in midday trading on the Toronto Stock Exchange. The stock had climbed to nearly $5.00 before July’s negative ruling.“In our opinion this is a significant milestone for WiLAN when considering this comes only two months after losing the 3GPP case in which Alcatel was a defendant,” Mr. Ofir said.He noted that WiLAN has filed motions for a retrial in that case and is likely to appeal if the motions are denied.The analyst believes the major catalyst for this settlement relates to the upcoming CDMA/WiFi trial scheduled for early October.Mr. Ofir reminded investors that while Wi-LAN lost the last trial, the upcoming trial includes patents that have been tried and tested and have been licensed to companies such as Intel, Broadcom, Atheros and others in advance of a trial in 2011.“From a strategic standpoint, while the company has already settled with and licensed Dell, signing Alcatel is a more significant settlement in this case and should apply more pressure on the remaining defendants including Apple, HTC and others to come to the table,” he said.