RE:RE:RE:RE:RE:Wilan?The Wilan sub divestiture is only as complicated as one wants to make it. I think it is relatively simple.
My net conclusion is that the IP will not be divested piecemeal. Here's why I think that there are at most two transactions.
Basket #1 - Partnership Patents Most Wilan held patents are the result of partnerships. Wilan owns very few patents. In effect, Wilan is selling the partnerships; this fundamentally means that retention of the Wilan management structure is probably central to the partners supporting the sale and ultimately the transfer of responsibility for monetizing their assets. I am 99% certain that the partnership agreements have a "change of control" clause that allows the non-Wilan partner to opt out. Possibly getting those ducks in line has been the barrier to an earlier implementation of the Wilan strategic review. Additionally, Gillberry said, unequivocally, on the reorg call that the prime customer for Wilan was one that wanted a steady revenue stream. Much of the referenced ~$30M/year revenue stream comes essentially from partnership-based licenses. and zero comes from the Apple situation.
Basket #2 - Wilan owned patents Wilan owns the Stanwood IP that Apple has been found to infringe plus there are additional Stanwood-based patents, and others, amongst Wilan's assets. The non-partnership patent assets could be treated separately.
We know only 4 things, as fact, that have been decided.
- There are two jury-based damage awards covering iPhones 6/7 with non-Intel chipsets sold through May 21, 2019 (the earliest date of the two patents the Apple was found to infringe): USD $145M plus interest (Jury #1) and USD $85M plus interest (Jury #2). With interest and exchange these awards are valued between ~C$140M and ~C$240M.
- The 145 patent, which Apple was found to infringe, expired May 21, 2019; the other patent to which Apple was found to infringe, the 757 patent, expired December 21, 2021.
- Short of a settlement between Wilan and Apple, the court will likely set a new rate or confirm either of the two existing jury awards.
- McKool Smith fees will be the only significant deduction from any award, unless a settlement is for less than the Samsung license, in which case a partial refund may be required.
Up in the Air issues Once the current Apple litigation on the Stanwood 145/757 patents is resolved, there are six related issues to consider. They are:
- iPhones 6/7 with Intel chipsets. CAFC may provide clarity here. Tens of millions of dollars are at stake.
- Royalties for infringement of the 757 patent by iPhones 6/7 from May 21, 2019 through December 21, 2021.
- Infringement of the 145/757 patents by iPhone models 8, X, 11, 12 and 13 up to December 21, 2021.
- Infringement of any Stanwood follow on patents.
- Canadian litigation.
- German litigation.
Once Basket #2 is resolved, and if a comprehensive settlement has NOT been achieved, any remaining "up in the air" issues with Apple could be sold off separately (or included with a Basket #1 purchaser) as their value would be more clearly established. Since
ZERO of the steady revenue stream comes from Basket #2, a divestiture of Basket #1 can proceed immediately without resolution of either Basket #2 or the "up in the air" issues, which are totally Apple-related.