Quarterhill Inc T.QTRH

AMD Litigations

[WinnerCircle948]

From the latest 3QTR Statements pp 16-17:
 

NOTE 12 – Commitments and Contingencies

 

Contingencies

 

Quarterhill Inc. Litigation

 

On July 2, 2018, three entities named Aquila Innovations, Inc. (Aquila), Collabo Innovations, Inc. (Collabo), and Polaris Innovations, Ltd. (Polaris), filed separate patent infringement complaints against the Company in the United States District Court for the Western District of Texas. Aquila alleges that the Company infringes two patents (6,239,614 and 6,895,519) relating to power management; Collabo alleges that the Company infringes one patent (7,930,575) related to power management; and Polaris alleges that the Company infringes two patents (6,728,144 and 8,117,526) relating to control or use of dynamic random- access memory, or DRAM. Each of the three complaints seeks unspecified monetary damages, interest, fees, expenses, and costs against the Company; Aquila and Collabo also seek enhanced damages. Aquila, Collabo, and Polaris each appear to be related to a patent assertion entity named Quarterhill Inc. (formerly WiLAN Inc.). On May 14, 2020, at the request of Polaris, the Court dismissed all claims related to one of the two patents in suite in the Polaris case. On June 10, 2020, the Court granted AMD’s motions to stay the Polaris and Aquila cases pending the completion of inter partes review of each of the patents-in-suit in those cases by the Patent Trial and Appeal Board. On February 22, 2021, February 26, 2021, and March 10, 2021, the Patent Trial and Appeal Board issued final written decisions in inter partes reviews invalidating all asserted claims of the remaining Polaris and Aquila patents. On May 10, 2021, Aquila filed a notice of appeal to the Court of Appeals for the Federal Circuit for the IPR decision regarding U.S. Patent No. 6,895,519. On April 30, 2021, Polaris filed a notice of appeal to the Court of Appeals for the Federal Circuit for the IPR decision regarding U.S. Patent No. 8,117,526. On May 14, 2021, AMD filed a notice of cross-appeal to the Court of Appeals for the Federal Circuit for the IPR decision regarding U.S. Patent No. 8,117,526. Appellate briefing is underway.

https://ir.amd.com/sec-filings/content/0000002488-21-000178/0000002488-21-000178.pdf

[wanttoknowwhy]

latest Docket entry, 10/11/2021. (Collabo Innovations, Inc. v. Advanced Micro Devices, Inc.)   The case back to the local court

[v_guerriero]

Thanks for sharing that.  There is a pretty high bar for litigations to make it into financial statements.  Typically more than $100M.  It is also the number one ranked litigation risk for AMD. AMD and Micron are two big Semis yet to pay.  Those of course are valued at zero probability. Wireless, Semiconductors and Memory are WiLans core patents that drive 90% of the value

[whaler83]

I think we'd need an activist investor to force the BOD on a sale of Wilan. Skippen and Fattouche love their baby too much. I'd love to be wrong because I totally agree we are trading at a discount compared to other ITS due to the Wilan business. Wilan, which is a brilliant business but was at the mercy of the U.S. patent law changes, could have done amazingly well but big tech killed that

[v_guerriero]

Yes, but they run the risk of losing the company. ST Engineering could offer you all 3.50 a share, get 20% of the US tolling market share and 90% of The CVO market for 14X EBITDA.  And ETC is winning 40% of new tolling offerings given the unique end to end offering.   They could then sell the WiLan business.  They probably end up paying 5-7X net of the WiLan sale for two key