Several of the pending court actions between the two firms will be dropped, and LG will make several cash payments to WiLAN. Other terms of the agreement were kept confidential.
However, WiLAN said a V-chip court dispute with LG, first made public in January, would still go forward.
Shares of WiLAN were up 37 cents to $4.70 on the Toronto Stock Exchange.
LG was previously part of a multi-firm patent litigation suit initiated by WiLAN and announced in October. The suit also named Alcatel-Lucent USA Inc., Ericsson Inc., Sony Ericsson Mobile Communications, HTC America Inc.
WiLAN licenses its portfolio of patents to other companies, and has a major court dispute coming up in January with big-name companies like Apple, Dell and Sony.
“There’s a lot at stake, because these companies are very well-known,” said Jim Skippen, chief executive of WiLAN, in an early December interview.
“A lot is riding on the case, but we feel very optimistic about it as we continue to review our position. We do know there is always uncertainty when you go to court … but we’re feeling very good about it."
