Ottawa Citizen's articlehttps://www.ottawacitizen.com/business/secures+patent+licensing+deal+with+Broadcom/4138513/story.html?cid=megadrop_story
OTTAWA — Ottawa-based Wi-LAN appears en route to a significant legal victory in Texas with its signing of a patent licensing deal Thursday with chip giant Broadcom of Irvine, California.
Broadcom is the fourth defendant to settle with Wi-LAN in advance of a trial over Wi-Fi wireless patents, scheduled to begin in Texas early next month. Atheros and Intel — both based in Silicon VAlley — and LG Electronics of South Korea have all agreed in recent weeks to pay royalties on patents claimed by Wi-LAN.
The significance of the Broadcom deal lies in the fact the California firm has the largest share of the market for Wi-Fi semiconductors among the 18 defendants.
Consequently, Wi-LAN should realize patent revenues of $25 million annually over the next six years from Broadcom, estimates Sean Peasgood, an analyst with Wellington West Capital Markets Inc. of Toronto.
Wi-LAN now has deals with four of the top five defendants, representing two-thirds of the potential market share for Wi-Fi patents.
Peasgood reckons the four signed to date will contribute $66 million to Wi-LAN’s revenue stream over the next six years.
This would amount to a substantial increase in Wi-LAN’s revenues. The Ottawa firm generated an estimated $48 million in sales in 2010.
Signing up the big four Wi-Fi players also increases the likelihood that Wi-LAN be able to persuade the other defendants to sign patent deals, thus avoiding the expense of a trial.