Quarterhill Inc T.QTRH

Wilan: backing away from litigation?

[cabbieJBJ]

In reviewing the QTRH/Wilan file on RPX, it is noteworthy that the last case filed by QTRH/Wilan in district court was Intel in August 2020.  This action was quickly settled.  All other outstanding cases are several years old and are working themselves through the appeal process for the most part.  Does this reflect a greater focus on semiconductors?  Or the premature stage of the 5G marketplace?  Or a strategic shift?

It's worth noting the significant cacses and their implications:

1. Apple - this board has beated this to death.  A CAFC ruling on iPhone models 6/7 is expected in the next 2-3 months.
2. iPhone models 6/7 with Intel chipsets - again at CAFC.  May get a ruling from CAFC or the issue will be returned to the district court as a contract dispute.  It is not an insignificant issue as the number of units is in the 10s of millions per commentary at CAFC oral argument.
3. iPhone models 8/10 and beyond - may practice the Stanwood IP.  Of the two patents found infringed, one expired in 2019 and the other expires in December of this year.
4. Kingston - argued at CAFC on 04-Nov-2021.
5. AMD
6. Siri IP - Amazon secured a Summary Judgement of non in infringement; QTRH appeal decision pending.  Google/Microsoft may or may not use the same techincal work around as Amazon.  Currently at CAFC with all parties appealing PTAB decisions; the case is not on the schedule through December.

[cabbieJBJ]

Oversight: Apple in Germany - three patent cases on semiconductor IP.  Case one heard on October 24.  Second case November; third case in March, 2022.

[wilander]

If I am not mistaken, Wilan costs a fair bit to operate does it not, cabbie? If its not making some serious money -- and going after infringers -- it becomes an even bigger anvil does it not?

[cabbieJBJ]

That could be Wilander.  But, perhaps Wilan is settling the semi portfolios without litigation for the most part - although the revenue stream, if this fiscal is an indicator, is small.  It is noteworthy that litigation assertion seems to have dried up. As far as overhead is concerned, I think that one of Parker's accomplishments was to right size the patent assertion

[cabbieJBJ]

Wilander, once Apple is resolved, the most valuable near term asset in Wilan is its people, structure and relationships.  Just my opinion.

[wilander]

Agreed. Except for the BOD. We need a refreshed new one to hold mgmt accountable.

[cabbieJBJ]

Wilander, I would like to see more ITS expertise on he board. However, let's consider if the priority for fiscal 2021 was to expand QTRH's ITS business through acquisition, which I believe it was, management and the BoD has been splendidly successful.

[astutein]

Cabbie  Would  it not fair to say that  responsbility of Board with repect to ETC and IRD is to see that they have the proper people in place to carry ITS segment as BOD only oversees it management of ITS companies. ETC In this regard I believe BOD did its due deligence in obtaining the services of Bruce Hill and staff.  In addition to retension of Bruce Hill under 

[astutein]

Correctin  reference is to Bruce Kidd of  of ETC.My mistake direction  of ETC.

[cabbieJBJ]

agree

[Sportsr4u]

I listened to the conference call and seem to remember Paul or someone saying Wilan has approximately 20 active licensing portfolios. No way for us to know the license periods and the timing of potential agreements, or even the amounts in play. Still hopeful for surprises in this quarter.