Quarterhill Inc (QTRHF)

[jtdiii]

Worth a read.....


Re: 8/4/2011 post on LG by "ronran"... news this morning confirms...

in response to 8/4/2011 post on LG by "ronran" (an attorney on this board) is worth a re-read by jtdiii

posted on Mar 08, 12 08:47AM Use the IP Check tool [?]


7:14AM Wi-LAN provides litigation update; court ruled that LG did not infringe the patent on a claim construction issue and it granted LG's motion for summary judgment (WILN) 5.07 : In January 2010, WiLAN sued LG Electronics, Inc. and LG Electronics U.S.A. for infringement of WiLAN's V-Chip patent in the United States District Court, Southern District of New York. In 2011, LG moved for summary judgment on numerous non-infringement and invalidity defenses as well as other affirmative defenses. On March 7, 2012, U.S. District Judge Lewis A. Kaplan adopted most of the August 1, 2011 recommendations of U.S. Magistrate Judge Peck and issued a ruling in this case. The court ruled that LG did not infringe the patent on a claim construction issue and it granted LG's motion for summary judgment. The ruling is limited to only LG products with respect to patent infringement. It does not apply to the validity of the patent nor does it make any determinations regarding validity of the patent. The ruling does not affect WiLAN's existing license agreements or V-Chip licensing program. The Company is further studying Judge Kaplan's ruling and expects to file an appeal in the United States Court of Appeals for the Federal Circuit.

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I'm glad to see this PR, which confirms what Mr. Skippen stated in the conference call that was the subject of my prior post. The bottom line is that the validity of the patent is not affected, and the ruling applies only to LG --- plus, my recollection from the prior conference call is that revenues from LG are a relatively small part of WILN's overall package.

Naturally, all of us would have preferred to see the Judge reverse the recommendation of the magistrate, but realistically, that occurs in only a very small percentage of cases. The fact of the matter is that no lawyer or company wins every case, and this is one of those times that WILN is just going to be required to move forward on the hand it has been dealt, which, as indicated above, will likely be an appeal.

The less-than-good news is that there will now be a delay, probably the better part of a year or perhaps more, for the appeal process to take place. The good news, as Mr. Skippen previously related, is that, in the interim, legal expenses for the LG case will be only a fraction of what would otherwise be incurred.

In summary, this is a setback, but by no means is it a major defeat for WILN in any kind of overall sense. My expectation is that it will be initially blown out of proportion by investors, so that the stock price will suffer to some degree in the short term. However, assuming WILN can start to perform again by generating new licensing deals and developing some of its other new avenues, the longer term still looks bright.

Best wishes to all.

http://agoracom.com/ir/wilan/forums/discussion/topics/522924-8-4-2011-post-on-lg-by-ronran-an-attorney-on-this-board-is-worth-a-re-read/messages/1656395#message